Makeup sales soar as more states lift mask mandates

Cosmetics sales for the four-weeks ended May 22 have surged 16.7% from a year ago, according to the latest data out of Nielsen. Yahoo Finance’s Brian Sozzi shares the details.

Video transcript

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MYLES UDLAND: All right, for the second time in a week Brian Sozzi reminding everybody that I am not wearing makeup, even though the lights really require that I should. And Soz, other people weren't wearing makeup, but it does seem that as the masks come off, as we mentioned into the tease, all this stuff goes on our face.

BRIAN SOZZI: Yeah, and I'll set this up too, and you could too, you viewers out there can do this boots on the ground type of research. So I went shopping for my favorite Maybelline Super Stay Buff Beige, Buff Beige right here. I use this stuff a lot for this gig, and I'm always running out. Also picked up some beautiful black new brushes from Target. But the fact is, I had to go run all over the place to find these things. Target, CVS, Walgreens out of stock in many foundations and concealers, which ultimately led me to check some of the Nielsen data. They check, Nielsen tracks makeup sales, personal care products.

And I can't say I'm surprised. These numbers are absolutely off the charts right now. Cosmetics sales for the four weeks ending May 22 up 16.7% year over year. Over the past 12 weeks, cosmetics sales up 24.7%. And the numbers are very strong. And you can, looking at within brands too, I'm looking at some of the hottest brands. L'Oreal owned Maybelline, as I noted here in my Buff Beige favorite color here, sales up 28% over the past four weeks. Coty-owned CoverGirl, I don't wear CoverGirl, no offense to Coty, just doesn't blend well with my skin, sales up 21% over the past four weeks.

And then last but not least, after you've connected all these dots, you can go onto the Yahoo Finance platform and look at what the stocks are doing. Investors and traders appear to be playing this recovery in makeup through the brands. I'm looking at right now shares of ELF, they sell cheaper type makeup down the aisles of Target and Walmart. Shares are up about 6% the past three months. Coty shares with CoverGirl, their shares are up 12%. Revlon shares up the most, 26%.

The one stock that has not quite a tailwind from this makeup rebound is Ulta. The shares are about down about 3% over the past three months. But I would say Ulta could ultimately catch that bid, no pun intended. Later this year, they're opening up a lot of shops inside of Target later this year. And certainly, you could see investors maybe unwind some of the focus on the brands and rotate into a company like Ulta, which is also, they reported earnings last week, they are also seeing a recovery.

JULIE HYMAN: Brian Sozzi, I have two important pieces of advice for you. Number one, buy your makeup online. You already know what your colors are. Just go online.

BRIAN SOZZI: It's no fun.

JULIE HYMAN: You don't need to run around to a bunch of different stores.

BRIAN SOZZI: It's no fun. No fun.

JULIE HYMAN: Makeup buying doesn't need, OK.

BRIAN SOZZI: I need to match it up to my skin, Julie. Look at this. Got to match up.

JULIE HYMAN: Number two, number two, Sephora, Sephora, Sephora. Don't mess with the math places, drugstores, go to the place that specializes in it. And by the way, Sephora owned by LVMH, as you recall, although it's only a small part of the business, but those shares are up 27% this year.

BRIAN SOZZI: That, I will give it a try.

MYLES UDLAND: I remember, for some reason, NW25 sticks out in my head as the color that works for me, but it did seem, it did seem back in the before times, that depending on which makeup artist I got in our green room, the color might change. The process would change ever so slightly. That's certainly something I have questions about as we begin our alleged return to office process. Though again, details continue to lack.