December 14, 2020
Though most consumers are not going to weddings, graduations, or nights out on the town at nearly the same rates as in years prior, the beauty industry remains a robust one, generating $500 billion worldwide, according to McKinsey & Co., a global management consulting firm. And while beauty product sales at essential retailers are down for 2020 due to COVID-19, the firm points out that sales fell slightly during the 2008 financial crisis as well and had fully recovered by 2010.
In the meantime, millions of consumers will continue to strive to look and feel their best, even if it’s only for videoconferences, taking Instagram-ready photos, TikTok videos, or just because. Here is a look at some of the major players in this massive industry.
Regis Corporation (Tii:RGS)
If you’re like millions of consumers, you either don’t have the skill or prefer not to DIY cutting and styling your hair. That’s where Cost Cutters, SuperCuts, First Choice Haircutters and more come into play – all of which are subsidiaries of Regis Corp. The company owns more than 10,000 salons worldwide – many of which were forced to close due to the pandemic. As a result, the company’s financials were negatively impacted, with a 54.9% drop in total revenue for its fiscal first quarter of 2021. However, Regis has made significant progress toward transitioning to an asset-light franchise model to improve its balance sheet once things return to normal.
Reviv3 Procare Company (Tii:RVIV)
Reviv3 Procare has been making waves in the beauty industry because of its hair and skincare products. From products that help revitalize the scalp to promoting beautiful and luscious hair, the company has set itself apart from others by only using natural ingredients such as extracts from saw palmetto palm trees and Japanese hop plants. Looking to grow sales internationally, the company announced a new distribution agreement with Concept JP, Inc. for exclusive distribution of its premium line of hair care products in the province of Quebec, Canada. Making its shares more appealing, Reviv3 Procare offers free gift cards as a stock perk to its shareholders.
Ulta Beauty, Inc. (Tii:ULTA)
Ulta Beauty offers consumers a way to focus on self-care as they relax in the comfort of their homes. The company provides a wide range of hand soaps, skincare and hair products, cosmetics, and fragrances. It will also become easier to purchase the company’s products while out shopping. Ulta Beauty recently announced that it formed a partnership with Target Corporation (Tii:TGT) where the beauty company will manage makeup and skincare shops in Target stores across the country. Ulta Beauty will also train Target employees as beauty consultants, making the retail giant a one-stop-shop for electronics, houseware, beauty tips and more.
Revlon, Inc. (Tii:REV)
Very few people have not heard Revlon's name, and many likely have at least one Revlon product in their homes. This cosmetics giant focuses on skincare, fragrance, cosmetics, and personal care lines. Since 1932, the company has established itself as a trusted and dedicated source to find high-quality cosmetics worldwide. The company recently hired a new chief marketing officer to manage and promote its overall brand, so consumers can expect to see new advertising and marketing content from the beauty giant in the weeks and months ahead.
The Estée Lauder Companies Inc. (Tii:EL)
Estee Lauder Companies is another brand dedicated to providing high-quality cosmetics, fragrances, and hair care products to the public. This company has an enormous brand portfolio that includes Clinique, Aveda, Bobbi Brown, Aramis, and many others. Their global product line can easily be found in salons, spas, and even on cruise ships. Another reason to consider these products, besides finding the right shampoo, is that Estee Lauder Companies is committed to corporate climate action and reducing greenhouse gas emissions in their manufacturing operations and supply chains. The company was recently recognized by the nonprofit Carbon Disclosure Project (CDP), the leading global framework for disclosing climate-related public information.
Even though the current environment has perhaps lessened the need for beauty products due to more days working from home and fewer opportunities to get together with family or friends, the beauty industry will undoubtedly bounce back – with companies such as these at the forefront of that recovery.