The Full Coverage newsletter by Priya Rao will be part of a BoF Professional Membership from October.
Welcome to Full Coverage, my weekly column that unpacks how shifting ideals, new players and cultural movements are transforming the global beauty and wellness industries.
First up, you may have noticed a name change. While I love our original name, Face Value, and feel like it accurately would have conveyed what you are going to get each week, our team was alerted that another newsletter with the name exists on Substack. Great minds do think alike! I don’t want to start this newsletter with any bad psychic energy, so now Face Value is Full Coverage. Meld the name and this column in your brain permanently and be sure to sign up here.
Now let’s get started.
Sephora’s Fall Merchandising Blitz
You may have noticed that Sephora, the LVMH-owned retailer beloved by both tweens and their moms, has nabbed every major beauty launch for fall. Of course there’s Rhode, but there’s actually much more than that.
Priya Venkatesh, global chief merchandising officer, and Carolyn Bojanowski, executive vice president of US merchandising, told me that Sephora is launching 16 new lines this fall, bringing its total count for 2025 to 35, 30 percent more than the average of the last three years. There are the new expert brands from Mary Phillips, Ali Webb and Chris McMillan, plus a crop of Korean exclusives, like Beauty of Joseon and Amorepacific’s dermatological line Aestura — to say nothing of the line and regional extensions that existing brands like Summer Fridays and Makeup by Mario have planned.
The retailer is perfecting its global retail strategy, which enables brands like Rhode and others to get to markets faster than before. (As a reminder, Hailey Bieber’s line launched in the US and Canada this month, and is headed to the UK by November.)
It’s a critical time, and Sephora’s future depends not only on pulling off these launches but sticking their international landings. I hopped on a Zoom with beauty’s far more important Priya and Carolyn to talk through it all.
Priya Rao: Carolyn, when we spoke at The Business of Beauty Global Forum in June, you said to me that Sephora had never had this kind of merchandising moment ever before. You’ve had big launches happen — Fenty, Makeup by Mario, Rare — but why is this fall so different?
Carolyn Bojanowski: We really haven’t had this moment ever. Some of the launches you mentioned before [Makeup by Mario, Rare] launched in 2020 and then had to be relaunched because of Covid. [Rhode] is a clean launch and we have the global piece now, so we are using all our firepower. We also have 15 other brands that are launching at the same time, and they aren’t baby brands or afterthoughts. There’s Mary [Phillips’ M.Ph] and Hung [Vanngo’s namesake line]. Unprecedented is an overused word, but it really is unprecedented in terms of launch cadence for us.
PR: Do you think Hailey Bieber and Rhode carry the same weight that Rihanna did a decade ago with Fenty?
PV: I think it’s hard to compare because [Rhode’s] an established business. The very first time I spoke to Hailey, it was a time when so many celebrities had beauty ideas … it was 2020, a Covid Zoom. She didn’t even have a product or a brand. She just wanted to talk, and we’ve kept the relationship alive since and now it all finally came together. She’s a very deep student of skincare. She is very much a brand founder right now. What she’s created stylistically and the way she communicates with her community on the brand, it’s different. Whereas with Rihanna, she was a global music superstar, and there was this new brand and news of fifty shades of foundation, but it hadn’t been proven.
PR: Can you tell me more about the roadmap for Rhode?
PV: Rhode will first launch in US and Canada in September, UK in November, and then we’ll plan Europe in 2026, 2027. We’re doing the global map after. It’s a very unified approach with some surprises for every region.
[Early results continue to surprise Sephora and Rhode; according to the both companies, Rhode was the biggest brand launch in Sephora North America history with sales results 250 percent greater than previous biggest brand launch; three Rhode items are being sold per second.]
PR: 35 brands is a lot for any retailer. Did you intend to launch this much?
CB: You had all the pent-up stuff happening and launching post-Covid, and then there was a bit of a lull in terms of like, ‘Are people really ready to start a brand?’ ‘Is the investment coming?’ So certainly, did we sit here and say, “Oh, good idea, we should launch 35 brands?” No, my team wants to kill me.
But it is this sort of natural cycle, like Chris McMillan saying, “This is my time.” We keep talking about this return to artistry in makeup, and it’s like, “What is the new Nars?” Mary Phillips has a unique point of view, [and there are] other new artists coming on the scene. Internally, we started talking about it as a team a while ago, and then there was this return to makeup [happening in real time] with these superstars like Mario [Dedivanovic], Patrick Ta. We literally cannot keep Patrick Starrr’s [setting] spray in stock.
PR: Tell me about Sephora’s point of view on K-Beauty now. What is different this time around?
PV: We brought BB cream from Korea to the US 15 years ago, but what was Americanized was just defining it. BB didn’t mean anything to Americans. We had to explain it’s a four-in-one [product] and what it does. Then, of course, you know, Korean beauty got oversaturated. What Korean skincare is delivering on now is clinical skincare with efficacy, affordability, innovation, entertainment, all the stuff they do very well. It’s hardcore skincare, and it’s good content.
PR: Is there more pressure in beauty right now? There seems to be so many similar brands, retailers, concepts.
PV: I think there’s always competitive pressure. Certainly at this point, we are probably the only global beauty retailer. Ulta [Beauty] is making a play to be a global player, it’s hard! It’s like, “Welcome. Welcome to the party. Join the hardship.” It’s a tough thing to do, to keep your brand consistent and be local and global at the same time. It is not easy. Amazon’s getting more baked into prestige.
Having said that, I think we always welcome qualitative competition. It’s good for the industry, but we’re not doing what we’re doing because there is competition. We’re doing it because it’s right, and we always want to bring the best of beauty to our communities around the world.
L’Oréal Should Buy Armani
When news broke that the will of fashion designer Giorgio Armani instructed his heirs to sell off his fashion business, or pursue an IPO, I immediately thought L’Oréal needs this.
The will named the conglomerate alongside LVMH and EssilorLuxottica as potential acquirers. From Armani’s perspective you could make a case for any of the three, but L’Oréal is probably the most motivated buyer. Think of it as extremely long-term insurance for the world’s biggest beauty conglomerate to keep its best designer license from falling into the hands of a rival.
Tell Me More: It’s becoming more common for beauty companies to buy fashion businesses when the threat of losing a lucrative cosmetics or fragrance arm is too big to withstand. See: Puig and Dries Van Noten or Estée Lauder Companies and Tom Ford.
Why? L’Oréal’s Armani business, which cuts across makeup, skincare and fragrance, is big, netting out over $1 billion in revenue annually. Though the beauty conglomerate has diversified its designer beauty portfolio with new lines like Prada and Miu Miu and the forthcoming Jacquemus, Armani and YSL Beauté remain its most prized possessions. Armani fragrances, including its Emporio Armani and Stronger For You scents were mentioned four different times in L’Oréal’s half year results. Moreover, L’Oréal has been creating buzz with the right, young faces for Armani Beauty — Sydney Sweeney, Sadie Sink, etc.
The Armani beauty licence was renewed in 2018 and is not up until 2050, but if the fashion house were to get into the hands of LVMH, things could get complicated. After all, LVMH has its own very successful beauty portfolio, with Dior (the most relevant heritage cosmetics business to exist besides Chanel), Sephora and now its namesake’s own outrageously-priced makeup foray, created by Pat McGrath. McGrath also created Dior show mascara and, you guessed it, Giorgio Armani’s hero product, Luminous Silk Foundation.
L’Oréal is dabbling more into fashion investments (see Jacquemus and Mugler) and would need partners to actually make the fashion but it has the money. Yes, it’s made billion-dollar plus purchases in the dermatological skincare space with Medik8, but L’Oréal Luxe is the second biggest arm of the business. Based on the hit rates of its recent designer launches like Prada, not all beauty licenses are created equal. L’Oréal did not respond to requests for comment.
Deal or No Deal
A smattering of deals came through this week, which signalled to me that more than ever brands want a sure thing. Not everyone is going to get $1 billion or more like Rhode or Dr. Squatch, so reality is setting in. Covenants are due and it’s time to cut your losses or get that tax shelter.
Nudestix’s Secret Sale: The Canadian makeup brand’s sale to an “undisclosed buyer” was not great news. WWD reported in 2019 that the brand was doing $70 million in retail sales; but sources told me last week revenue was closer to $30 million (meaning it fell slightly in the last six years). The brand was apparently asking prospective buyers to take on its debt, which, operationally, is not a good look.
It’s a precipitous fall for a viral line, which just two years ago was everywhere thanks to Sofia Richie Grainge’s seal of approval — she became an investor in 2022 and wore its signature creamy blush sticks to her wedding of the century a year later. Clearly, this was not marketing that Nudestix could take to the bank.
Aside from questionable debt and marketing spend, the brand has had a tough time moving beyond its signature product. It also seemed like it couldn’t recover from the hit it would face when Rhode introduced its own blush sticks last year. Nudestix did not respond to requests for comment.
Cos Bar’s New Parent: After I disputed rumors it was being bought by Violet Grey, Mark Mitchell’s Michigan-based family office, which appears to have no direct beauty expertise (except for the ownership of AI-powered smart mirror label Swan Beauty) swept in to claim Cos Bar. It would have made sense for Violet Grey and Cos Bar, two high-end independent retailers, to join forces, but apparently the investment required to level set Cos Bar’s existing fleet was too steep for Violet Grey. Cos Bar is a family business, and I’m hearing that ultimately CEO Oliver Garfield, who is staying on in his role, wanted more say in maintaining the company’s legacy (his mother Lily started the business in the 70s). In the case of Violet Grey’s purchase of Detox Market, founder Romain Gaillard is staying on in an unknown capactiy, but Violet Grey chief executive Sherif Guirgis and group president Tracy Kline are overseeing both brands.
Osea’s Hail Mary: After a deal with Shiseido imploded last year, Osea has found a home with private equity firm General Atlantic. It’s the best outcome for Osea in hindsight, considering Shiseido’s integration of new brands hasn’t panned out (see: Drunk Elephant) and its US team is a shell of it once was. Osea had reportedly been having discussions with buyers since late 2022. General Atlantic got a big win this year with Mona Kattan’s Kayali, but has yet to sell Vegamour and is still rebuilding its beauty practice after its debacle with Morphe. Selling to private equity instead of a conglomerate is never a brand’s first choice (though most brands have to take a dual path these days), so in this situation, it is what it is.
Can Gap Get Beauty Right?
Earlier this month, I broke the news that beauty veteran John Demsey was officially working with Gap Inc. on its forthcoming beauty lines. Gap sent the news wide yesterday, along with additional announcements that Deb Redmond, previously of Nordstrom’s, was named general manager of beauty, and Reed Krakoff would spearhead accessories.
Old Navy’s beauty play could be huge, as that business alone is $8.4 billion, and could serve as the missing grab-and-go beauty piece that CVS, Walgreens and Rite Aid can’t solve for today.
Gap’s opening could be trickier. Sources tell me that the new line is expected to retail for a higher price point than the Dream, Grass scents of my youth. Considering the store is often on promo — always how I buy my boys’ pajamas — that could be a hard sell. It has also tried to bring beauty before, and so has every other multi-brand retailer including Zara, H&M and Forever 21.
What was so brilliant about the OG Gap beauty era is that the company bought Motura, a personal care line of glycerin soaps founded by Gary McNatton, and installed McNatton as Gap’s vice president of personal care. I doubt any incubator or agency would do that today, but at least this go around they have a real beauty merchant handling beauty in-house. Redmond made Nordstrom’s cosmetics and skincare feel different than everything else happening in department stores and Demsey, as we all know, is a proven operator and brand builder.
Kris Jenner (and Nicola Formichetti) for MAC
After a year of off-kilter campaigns, including “Born Famous” with model Amelia Gray and her mother Lisa Rinna, and “I Only Wear MAC” featuring a naked Julia Fox on the subway, the makeup giant finally has a hit on its hands.
Kris Jenner (and her gorgeous new face by Dr. Steven Levine) is the newest face (“no pun intended” according to the press release) of “I Only Wear MAC”, fronting the brand’s Studio Fix Foundation. The campaign feels markedly different from previous imagery and that’s not just because Inez and Vinoodh shot Jenner (or that we are using black-and-white shots to sell the foundation — that’s a choice).
This is Nicola Formichetti’s first imprint on the brand. Some beauty insiders I’ve talked to have questioned the creative’s relevancy, but perhaps his best vantage point is that Formichetti was previously involved at Haus Labs, which now has the best-selling foundation at Sephora. (Haus Labs has an awesome foundation campaign out now with Gaga drenching foundation as paint on herself.) That MAC is having Formichetti start with its Studio Fix franchise says something — it’s not ready to let complexion get away.
Whew – that’s it!
Thanks for reading the first edition of Full Coverage. Please send me all the feedback, questions, tips, comments or concerns to [email protected] or shoot me a DM at @priyarao.
See you next week!
