The Zacks Cosmetics industry is currently facing significant challenges, including softer consumer spending and rising operational costs, which have collectively squeezed profit margins. Companies are navigating ongoing trade tensions and supply chain disruptions, while the Zacks Cosmetics industry holds a rank of #177, placing it in the bottom 27% of over 243 Zacks industries. This reflects a 6.1% decrease in aggregate earnings estimates since early October 2025.
Despite these pressures, major players such as The Estee Lauder Companies Inc. (EL), Coty Inc. (COTY), Helen of Troy Limited (HELE), and European Wax Center, Inc. (EWCZ) continue to focus on innovation and digital transformation initiatives to maintain competitiveness. For instance, Estee Lauder’s earnings per share (EPS) estimate for the current fiscal year has increased to $2.15, with shares up 39.7% over the past six months, contrasted by Coty’s unchanged EPS estimate of 42 cents and a 34% decline in stock value during the same period.
The Zacks Cosmetics industry has underperformed the S&P 500’s growth of 18.3% over the past year, achieving only a 10% return. The industry’s price-to-earnings ratio stands at 28.99, significantly higher than the S&P 500’s 23.45, suggesting expensive valuations amid difficult market conditions.
