Milk Makeup owner cuts forecast and announces strategic review
Challenging global beauty markets are prompting Waldencast, Milk Makeup's owner, to delay its first-half earnings release and trim guidance, while launching a strategic review.
The London-headquartered beauty group, which owns Milk Makeup and Obagi Medical, said H1 2025 was a "highly productive first half" despite a "dynamic global environment" and ongoing supply challenges. CEO Michel Brousset noted that revenue growth resumed in Q2 as the business cycled last year’s blockbuster launches.
Milk Makeup delivered high-20s growth in US retail sales in Q2, helped by its Ulta Beauty rollout, Amazon Premium Beauty launch and its best-selling Hydro Grip Gel Skin Tint. However, international markets remained weak. To strengthen its presence, Waldencast confirmed it is investing in a new international structure and marketing support.
Obagi Medical reported mid-teens growth in its core US strategic channels and even faster gains internationally, including launches in the Middle East and Nordics.
Waldencast also announced it has begun a strategic review aimed at maximising shareholder value, with Lazard appointed as financial advisor. The company stressed that no outcome is guaranteed.
As part of this process, Waldencast has postponed the publication of its H1 2025 financials and conference call to allow additional analysis of its long-term business plan following the Novaestiq acquisition. The group still expects to meet regulatory deadlines for filing.
For FY 2025, Waldencast now forecasts low-to mid-single-digit net revenue growth and adjusted EBITDA margins in the low-to mid-teens.
Brousset said: "We believe the actions we are taking will set us up to strengthen our foundation for delivering our long-term ambitions and accelerated future growth and profitability. In light of a growing number of opportunities, we have decided to undertake a review of a broad range of strategic alternatives focused on maximising shareholder value."
The update comes amid a tough earnings season for global beauty. Today, Estée Lauder Companies (ELC) announced it ended fiscal 2025 on a weak note, with sales falling across all regions and most categories as tariff pressures under the Trump administration loomed. The beauty giant’s shares dropped 9% in premarket trading after it forecast annual profit below Wall Street estimates.
For the year ending 30 June 2025, ELC’s net sales fell by 8%, with all geographic regions experiencing declines. The Americas saw sales dip by 3% to $4.41 billion (£3.27 billion), EMEA was down by 13% to $5.38 billion (£3.99 billion), and Asia/Pacific was down by 7% to $4.54 billion (£3.37 billion).
