Foto courtesy of Balenciaga
An illustrative example was the company Gap Inc., writes PROfashion. In the first quarter of 2025, its comparable sales grew by only 1%, and total revenue amounted to about $ 3.73 billion. Management attributes the weak dynamics to changes in U.S. trade policy and a decline in customer interest in clothing. In search of new points of growth, the Old Navy brand, which is part of the holding, decided to test the beauty direction.
In the fall of 2025, Old Navy introduced its own line of cosmetics and personal care products. The assortment included lotions, shower gels, products for skin and hair care, decorative cosmetics and manicure products. In some stores the new products were placed right next to the cash registers, and in several dozen outlets there were special zones with consultants. Internal research showed that about 70% of the brand’s customers are ready to buy cosmetics from a familiar retailer. The experiment turned out to be successful: already in the fourth quarter after the launch of the line Old Navy sales increased compared to the previous year. The cosmetics helped to increase the average check and frequency of purchases, reducing the dependence on fluctuations in demand for clothing.
Large luxury groups are also actively developing the beauty direction. For example, Kering Holding created its own division Kering Beauté, which deals with cosmetics and perfumery brands Balenciaga, Bottega Veneta, Gucci and Creed. In 2024, the company began aggressively expanding its perfume business with the introduction of Bottega Veneta, a collection of fragrances inspired by the traditions of Italian craftsmanship. A year later, Balenciaga launched a new perfume series referring to the historic Le Dix fragrance.
The beauty category attracts fashion brands not only because of its high margins. Cosmetics and perfumes are often the most accessible way to get to know a brand, forming an emotional connection with customers. In addition, such products allow to attract a young audience and actively use collaborations. For example, the Heaven by Marc Jacobs project together with the cosmetics brand Starface released a collection of colorful acne patches that sold out in less than 24 hours.
Experts note that today the beauty segment has turned from an image supplement into a full-fledged strategic tool for fashion companies. Cosmetics help to increase sales, strengthen audience loyalty and maintain interest in the brand even during periods of reduced demand for clothing.
