E‑commerce and New Channel Momentum
Prestige sales on Amazon have grown ~30% over the last 6 months; a July Marc Jacobs launch on Amazon is driving double‑digit growth. Activity in TikTok Shop (e.g., Rimmel in the U.K.) is generating marketing halo effects that boost brick‑and‑mortar performance.
Successful New Product Performance
Boss Bottled Beyond launched in summer and is the #2 male initiative of the year, delivering ~90 basis points share in the U.S. for Hugo Boss innovation.
AI and Marketing Productivity Gains
Experiments in AI for color cosmetics asset creation indicate potential cost reductions of 70%–80% versus current processes, enabling reallocation of funds into working media and consumer‑facing activities.
Pipeline of New Brand and License Opportunities
Management highlighted new/renewed licenses (Swarovski, Armani, Etro) and is planning a potential blockbuster for Swarovski in 2027; Calvin Klein and Marc Jacobs innovations are slated as near‑term growth drivers.
Fragrance Category Demand and Volume Trends
Company expects the fragrance category to continue growing mid‑single digits; management reported continued household penetration and new consumer inflows (Gen Z) into the category.
Operational and Data Investments
Leadership is investing in a single source‑of‑truth data lake, AI and analytics to improve sell‑out focus, joint business planning with retailers, SKU rationalization and SG&A/platform optimization — intended to drive recoveries starting fiscal 2027.