Soaring inflation across the U.S. is impossible to ignore. From the gas station to the grocery store to the home, every part of life is being impacted.

And that’s true for the beauty sector, too. In a slew of summer trading updates, global beauty companies cited inflation as a headwind that has caused price increases.

Chloe Cherry Celebrates Urban Decay Vice Lip Bond Liquid Lip Color Campaign

Eye Candy: Inside the 2022 Fragrance Foundation Awards

Coty Inc., whose brands include CoverGirl, Gucci Beauty, Lancaster, Kylie Cosmetics and Skkn by Kim, implemented low-single-digit price increases during the second half of fiscal ’22 and is now in the process of arranging more hikes, this time in the mid-single-digits.

“That’s the way we are tackling this inflation,” chief executive officer Sue Nabi said in an August interview.

At the Estée Lauder Cos. Inc., executive vice president and chief financial officer Tracey Travis told Beauty Inc that while the firm usually increases prices across the board each year, it did more so this year due to inflation — at around an average rate of 5.5 percent. Some of that is reflected in new products that were introduced at higher prices.

And Ulta Beauty, to name one more, revealed that it received a large number of price increases from brand partners in the first half of this year. It expects to receive additional increases throughout the rest of the year.

So far, this has not appeared to impact consumption — even at the prestige level.

Coty’s prestige fragrances, for example, have been flying off the shelves, with particularly strong performances from Hugo Boss, Burberry, Chloé, Calvin Klein and Gucci Beauty, which delivered 20 percent growth in the fourth quarter and helped the overall prestige sector to grow of 16 per cent year-over-year, to $662.8 million.

At Ulta, both prestige and mass makeup delivered double-digit comp growth in its second quarter, compared to the same period a year earlier, leading the retailer to raise its full-year outlook.

Lauder, meanwhile, continues to see the prestige beauty market grow by double digits in the U.S., according to Travis.

Citing Leonard A. Lauder’s Lipstick Index, the mogul’s theory that beauty sales increase during tough economic times, she said: “We are a category that it is an affordable luxury, particularly when you’re making choices about what you would like to buy from a discretionary standpoint.”

Coty’s Nabi believes that its latest set of figures prove that it’s more a fragrance index rather than a lipstick one. “Fragrances speak to everyone — whatever the age, whatever the gender, and what we have seen, which is the reality of the data and statistics, is that this beauty market is lifted by the fragrance consumption and this is not female or male. It’s both and it’s mainly also Gen Z.”

But whatever measure you prefer, can this resilience last, even as inflation refuses to budge and recession fears mount?

According to analysts, the short answer is yes, even as the latest official figures showed that while consumer spending grew ever so slightly in July, it was at a slower pace than in June.

As has been seen in previous downturns such as the 2008 financial crisis, while there has been trade down during past downturns, generally no one leaves beauty.

Olivia Tong, an analyst at Raymond James, said that the resilience of beauty has been bolstered by a wide reopening after COVID-19, leading to more travel and going out, as well as innovation in the sector. She believes this trend can hold up — as long as there are no serious disruptions to household income such as a job loss.

“Beauty is an affordable luxury. It’s not a car, it’s not a handbag, it’s not a vacation and quite frankly a lipstick is cheaper than going out for dinner and lasts longer,” she said. “So to the extent that you get a little gift for yourself, provided that there’s not been a material disruption to your household, but assuming that you are in a relatively mild slowdown, then your patterns may not change as materially as in some other categories.”

Neil Saunders, managing director of GlobalData, added: “While the lipstick effect seems like a cliché, it is based on a truth that is still relevant, namely that consumers are very reluctant to give up little beauty treats and indulgences and, indeed, feel like these are deserved rewards for living through a more difficult time. Outside of indulgences, it is also the case that many beauty and skin care routines are very much embedded into people’s lives so there is great reluctance to cut back on any of the products associated with them.”

He sees some but not much downside risk to the beauty segment, which he thinks will be one of the winners over the lucrative holiday period.   So, while there may be trade down to come and retailers such as Ulta say they are prepared to adjust accordingly if needed, it is unlikely that there will be a mass exodus from beauty anytime soon.

As Olaplex’s president and chief executive officer JuE Wong puts it, “You still have to wash your face, you still have to wash your hair, you still have to shower.”

Sign up for WWD's Newsletter. For the latest news, follow us on Twitter, Facebook, and Instagram.

RSVP for "A Matter of Style", a Fairchild Archive exhibition September 9-10 in New York City.

Click here to read the full article.

Kim Kardashian dropped all her barriers—even her pants—for her latest interview, and spoke about Pete Davidson for the first time since their split.

A small, travel-size fragrance is a vacation must-have. These picks from Tom Ford, Jo Malone London and more are all $80 and under.

When it comes to shopping for beauty, we know how important it can be to swatch everything. After all, there’s no better way to find your perfect foundation shade, or test whether a particular red lipstick hue brightens your skin tone. However, with websites having better shade-matching tools than ever, you can easily shop beauty products with confidence. (And if you slightly miss the mark, most places give you the option to exchange or return.)However, since we know that you already surf the ne

Kylie Jenner and Travis Scott’s baby boy has a new name — and it has nothing to do with animals this time! The Kylie Cosmetics founder gave a few more details about her baby boy’s name on an appearance on The Late Late Show with James Corden Thursday, revealing that they are “waiting” to change […]

The retailer continues to struggle with excess inventory, price hikes and increased promotional activity.

Kris and Kylie Jenner just took to TikTok to show fans their cocktail-making skills, and they're all joking about the same thing - it's just vodka.

Are corsets the new power blazer?

It's expensive, but by far the coolest thing I've tried all year.

Forget changing out batteries all the time — these cameras are fueled by the sun.

Crocs, Lee, Hanes and so much more: This style bonanza is still going strong — and prices start at $8.

The model and actress explains her comfortable approach to fashion.

Amazon shoppers are obsessed with this super sucker.

Licensed massage therapist Priscilla Fleming combats the hyper-sexualization of the industry by educating other professionals on how to protect themselves.

The shopping event we waited for all summer is still going (but not for long)! Tons of appliances are massively discounted!

Have XL pores on your nose? This dermatologist-approved winner scoops out all that oil and dirt.

Start your holiday shopping early and snap up epic gaming deals all September long (while supplies last).

Amazon's top-seller is quite the smooth operator: 'The wheels spin and move like butter on a hot pan!'

Priscilla Fleming became a licensed massage therapist in 2019 to help people. What she didn’t expect was sexual harassment, which she says began almost instantly. “At that point I now had to process this traumatic experience while also navigating a brand new industry that put me alone in a dark room with strangers. So I really contemplated just leaving the industry all together between the vulgar messages and then trying to navigate that. I wasn't sure if it was worth it, but I stuck it out, “ says Fleming. In response, Fleming launched the ethics course, “Safety & Solicitation: Gaslighting and Power Dynamics” to help other therapists recognize threatening behavior from clients. She’s also on a mission to combat harmful stereotypes that plague the massage industry. The dangers facing massage therapists made headlines last month, when NFL quarterback Deshuan Watson was suspended by the Cleveland Browns for 11 games and given a $5 million fine after he was accused of sexual misconduct by 24 massage therapists. Allegations included Watson exposing himself and manipulating therapists into touching him in an inappropriate manner. Two of the women also accused Watson of pressuring them to perform oral sex. While Watson has repeatedly denied the claims, 23 of the 24 civil lawsuits have been settled. In an interview with Sports Radio 610, Watson’s lawyer, Rusty Hardin, claimed that a ‘happy ending’ was not a crime unless extra money was paid for the service. “I feel as though he single handedly put a lot of us at risk to be assaulted,” says Fleming. “The NFL is a very large, well known industry and there is a very large fan base. So by his lawyer making these allegations, I'm afraid that this is going to empower that fan base to come and seek what Dashaun Watson was receiving.” With her ethics course, Fleming spends considerable time educating other therapists about gaslighting and grooming tactics used by predatory clients. Gaslighting involves manipulating someone by sowing self doubt in what they are experiencing, and grooming is a process of seeing how far a predator can push past a person's personal boundaries. Fleming notes that in the therapeutic relationship, the licensed therapist is granted the power to lead the dynamic in a professional setting. She says that when that power dynamic shifts, therapists may find themselves operating in threatening territory.

Barrymore explained to Rob Lowe that she is more "conservative" with her children than her mother was with her.

One Connecticut middle school is raising future guide dogs. Here's how to become a "puppy raiser."