• by Sarah Mahoney  @mahoney_sarah, February 10, 2022

The latest financial news from both L'Oréal and Estee Lauder proves that masks or no masks, the world wants to wear lipstick again. Both companies posted record sales results and predict gains will accelerate in the coming months. And a new analysis from NPD Group underscores consumers' growing hunger for a wide variety of beauty products.

L'Oréal's just-released financial report says annual sales rose 16.1%, to a record 32.28 billion euros (or $37.03 billion.) The French company says that's twice the growth rate of the overall global beauty market. Results got a significant boost from ecommerce sales, which advanced 26% and now account for 29% of total revenues.

Profits also topped expectations.

And while L'Oréal gained in all geographic zones, North America sales shone brightest, gaining 19.6% for the quarter and 18.2% for the year.

L'Oréal brands include Lancôme, Maybelline, Urban Decay, Garnier, and The Body Shop, as well as La Roche-Posay and SkinCeuticals.

Estee Lauder's results last week also set records. Revenues for its fiscal second-quarter increased 14% to $5.54 billion, up from $4.85 billion in the prior-year period.

The company says those increases happened in every region and category, helped by increased traffic at brick-and-mortar stores. Net earnings jumped to $1.09 billion, up from $870 million in the prior-year period.

"Every category, region and major channel expanded, showcasing the strength of our multiple engines of growth strategy," Lauder says in its announcement.

Sales of skincare products, its biggest division, advanced 17%, and sales in makeup, its second-largest component, shot up more than 100%.

Brands Estée Lauder, M·A·C, Too Faced, Tom Ford Beauty and Smashbox all made strong showings.

Lauder expects a sales increase of between 10% and 12% for the coming quarter.

Results from both companies also reflect gains in the category overall.NPD Group, a market research company that tracks the beauty business, says that in the U.S., 2021 sales of prestige beauty products jumped 30% to $22 billion in 2021.

Fragrance made the biggest gains, up 49%, followed by hair products (up 47%), makeup (23%) and skincare (18%).

"The beauty industry saw continued growth from pandemic winners including perfumes, scented candles, facial exfoliators, nail care, and hair care products," NPD says in its analysis. "At the same time, makeup foundation, hair styling products, and other segments of the market started to recover as consumers began returning to workplaces, events, and other social activities."