• by Sarah Mahoney , 3 hours ago

As Estée Lauder continues its multiyear effort to stabilize weaker makeup performance, the company is placing unusual emphasis on MAC Cosmetics’ long-awaited entry into Sephora U.S., with executives calling the move a “big game changer” for the brand.

The rollout starts next month in more than 100 Sephora stores and Sephora shops within Kohl’s, marking a significant shift for MAC, long associated with department stores and freestanding retail. For Lauder, the expansion signals more than a new point of distribution — it reflects broader channel dynamics reshaping prestige beauty.

In a recent earnings call, Stéphane de La Faverie, the company’s president and CEO, framed the move as a milestone after “many, many years of not playing in all specialty multi.”

That absence had grown increasingly conspicuous as Sephora’s influence expanded and department stores’ role steadily diminished. De La Faverie noted that department store penetration in North America now represents roughly 30% or less of the company’s business, a sharp contrast to the channel’s historical dominance in prestige cosmetics.

Instead, Lauder has accelerated investments across specialty retail and digital-first platforms. Executives also credited TikTok Shop with helping drive recent momentum, particularly for MAC.

The company’s entry into TikTok Shop in the U.S. with Clinique and MAC “has allowed actually MAC to just already be in a market share gain in the lip category, which is so important,” de La Faverie said, pointing to early signs that alternative commerce channels are contributing to brand performance. He also noted that MAC has done well in Ulta.

Against that backdrop, Sephora’s scale and consumer engagement present a different kind of opportunity. Analysts see the retailer’s high-traffic, discovery-driven environment as especially valuable for heritage brands seeking renewed relevance with younger shoppers.

Morningstar’s Dan Su, writing after Lauder’s latest earnings report, argued that “an expanding Sephora partnership in the U.S. should complement its Ulta relationship and help Estee gain share in its key home market,” highlighting specialty multi-brand retail as a meaningful growth lever.

The Sephora debut is supported by a new global marketing campaign from MAC Global Creative Director Nicola Formichetti featuring musician Chappell Roan, reflecting the brand’s emphasis on cultural visibility as it expands distribution.

For Estee Lauder, however, the strategic implications run deeper than campaign theatrics. While skin care continues to drive the company’s strongest gains, makeup has remained a relative pressure point. MAC’s return to organic sales growth, paired with expanded specialty distribution and emerging digital channels, now represents a closely watched test of Lauder’s channel rebalancing strategy.

In a beauty market increasingly defined by channel shifts rather than product cycles, where MAC sells may prove as important as what it sells.