Beauty companies on both sides of the pond are expected to have to grapple with a multitude of issues throughout the remainder of the year and into 2026.

Starting with Europe, numerous beauty companies there cut their full-year guidance due to a host of factors, including a weak U.S. dollar and softening consumer demand.

Interparfums SA in July said its full-year sales target should return to the lower end of the initial estimate, to around 910 million euros, due to the appreciation of the euro against the U.S. dollar since spring.

Fragrance and flavors supplier Symrise that same month lowered its full-year 2025 organic growth outlook to 3 percent to 5 percent, from 5 percent to 7 percent, due to challenging global demand.

Henkel also in July lowered its 2025 organic sales growth guidance to 1 percent to 2 percent, versus the previously announced 1.5 percent to 3.5 percent.

“We believe Henkel faces challenging translating pricing into growth as consumers appear more price-sensitive and less brand loyal today,” wrote Danny Yeo, an equity analyst at CFRA Research, in a note.

While navigating slowing consumer demand, several beauty companies are raising product prices. 

Puig said in July, independent of tariffs, it had already decided to make price increases in the midsingle digits in August. 

It’s the same story in the U.S.: E.l.f. Beauty on Aug. 1 took its prices up $1 across the brand portfolio, to counterbalance rising costs from inflation and import tariffs, especially on products made in China.

Procter & Gamble, whose brands include Pampers, Tide, Gillette and SK-II, plans to increase prices on around a quarter of its items.

“At these rates, tariffs alone are a 5-point headwind to core EPS growth in fiscal 2026. We will look for every opportunity to mitigate these impacts, including sourcing flexibility, productivity improvements, and pricing with innovation in affected categories and markets,” said outgoing chief executive Jon R. Moeller during an earnings call.

Its fiscal 2026 outlook includes $1 billion before tax in higher costs from tariffs based on rates announced since July 9, Moeller explained. “You can think about the tariff impact in three buckets. About $200 million from materials and products imported from China to the U.S. Another $200 million from Canada’s tariffs on goods shipped from the U.S. And the remaining $600 million from tariffs on goods coming to the U.S. from the rest of the world.”

The Estée Lauder Cos. said it, too, has the option to raise prices in its tool kit. Concurrently, chief financial officer Akhil Shrivastava said the company has been working to reduce the tariff impact in its supply chain. It expects tariff-related headwinds to impact profitability by about $100 million.

He said, “We saw the challenge that was ahead of us, and we put a task force in place working directly with Stéphane [de La Faverie, CEO] and me on strategies to mitigate the tariff impacts. We have used the trade agreements. We have moved production. We have looked at material sourcing, finished good sourcing, leveraging our nine campuses around the world. And we are on track to reduce the share of products sold in China that are sourced from our U.S. plants to less than 10 percent by the end of the year.”

Oliver Chen, an analyst at TD Cowen, said: “The Estée Lauder Cos. is taking the right steps, in our view, to transform the company, but we continue to monitor signs of longevity in a tougher backdrop.”

Against this challenging and ever-evolving backdrop, more job losses are also expected in beauty.

In February, Lauder revealed plans to ramp up its restructuring program and eliminate between 5,800 and 7,000 positions. As of Aug. 13, the company had approved initiatives totaling $747 million and a net reduction of more than 3,200 positions. 

In April, Coty revealed plans to cut up to 700 jobs as it revisits a strategy launched during the pandemic.

Shiseido Americas is also trimming its headcount. “Shiseido Americas has undertaken a business transformation to return to growth and profitability. As part of this process, we have made the difficult decision to eliminate certain roles within the company and a number of our employees have been adversely impacted,” the company said in a statement. 

There are, however, bright spots.

The move to sell more prestige beauty on Amazon is paying off, especially for the likes of Lauder, which eschewed the platform for years, while brands are experiencing growth fueled by TikTok.

After its partnership ended with Target, Ulta Beauty is eyeing growth from expanding internationally for the first time, beginning with Mexico, where it just soft launched a store in the capital, and the Middle East later this year.

And while it has slowed slightly, fragrance is still a hot category, driving growth for many of the big players.