Sales of prestige beauty items in U.S. department stores jumped 5% in the second quarter of 2014 to $2.5 billion, according to The NPD Group. Growth across each of beauty’s three largest categories—skin care, fragrance and cosmetics—contributed to the growth.
Karen Grant, Vice President and Global Industry Analyst, The NPD Group, Inc., said she is encouraged by the second quarter’s positive performance.
“Primary prestige segments continue to be market drivers, but the industry is realizing the opportunities and revenue that lie among smaller, more specialized segments. With the current momentum as a platform, we expect the next two quarters to be positive, leading to annual performance a bit softer but in line with the low to mid-single-digit growth trend of 2013.”
Makeup sales during the quarter increased 8% to $1 billion. Sales of face products led growth in makeup, accounting for nearly half of category sales and outpacing category growth slightly. Eye and lip makeup combined account for nearly 46 percent of the category dollar sales, almost as much as face makeup, and their combined growth was greater than their face counterparts. Nail was the only makeup segment with sales declines during the quarter.
Fragrance sales took a surprising 5% leap during the quarter, with juices, which account for 65% of total prestige fragrance sales, growing 7%. Fragrance ancillary sales added to the prestige category growth with a 3% increase in dollar sales, though at just 6% of the market, it’s a subtle note.