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This week was highlighted by disappointing earnings reports from two beauty giants. Coty – where more than 60% of its revenues come from fragrances – reported net revenue for the 4th quarter of FY25 was down 8% YOY; and the Estée Lauder Companies, also down by 8% for the year, largely due to declines in its travel retail business.
According to Stephane de La Fabri, President and Chief Executive Officer, Estee Lauder Companies, in an earnings call on August 20, “nearly two thirds of our 8% organic sales decline came from Travel Retail, as it decreased 28%…”
Nevertheless, both companies are taking strategic decisions to turn their businesses around, and ELC, especially, is beginning to see some improvement ahead. TMI will bring more details on both companies in our next issue.
Meanwhile, on a more positive note, research agency Circana this week reported that beauty sales in the U.S. grew in the first half of the year, reaching more than $50 billion. As has been the trend, luxury and value-priced fragrances are leading sales, with makeup mostly flat and sales of prestige skincare actually down. See full Circana report synopsis on page 4.
AIRPORT CONCESSIONS
There was quite a lot of activity in the airport sector this week.
Duty Free Americas announced that it has expanded its strategic partnership with Visa, rolling out new benefits and opening in additional locations. See details on age 1.
Avolta’s Hudson brand won two 10-year retail packages at Atlanta Hartsfield-Jackson International Airport, where it will open 20 new retail stores. Hudson currently operates nearly 40 locations at ATL, the world’s busiest airport by passenger volume. Page 1.
Mexican airport operator ASUR (Grupo Aeroportuarios del Sureste) will enter the U.S. market with a deal to acquire Unibail-Rodamco-Westfield’s airport retail concessions at JFK, LAX and Chicago ORD airports. Read more on page 2.
AIRPORT LOUNGES
Qatar Airways at JFK
Qatar Airways — named World’s Best Airline 2025 for a record ninth time by Skytrax — will move its operations to the state-of-the-art The New Terminal One at New York JFK in 2026 where it will operate a premium, 15,000-square-foot Qatar Airways lounge – the airline’s first dedicated lounge in the United States. Page 2.
Gameway at JFK
Gameway, the award-winning pioneer of airport gaming lounges, has opened Gameway Ulta in JFK Terminal 5. This is its second location at JFK and tenth nationwide. Positioned in JetBlue’s flagship terminal, the new lounge offers travelers a modern space to relax, play, and connect with Xbox, PlayStation, PC, and retro gaming stations, along with snacks and drinks. More details on page 3.
Airports Dimensions airport lounges won 30 awards in the last 12 months. Among the winners in North America, with numerous awards, are The Club SFO and The Chase Sapphire Lounge by the Club at LaGuardia Airport. Page 3.
CRUISE
Princess Cruises’ news Star Princess has successfully completed its sea trials in the Adriatic Sea before its October 4th debut sailing the Mediterranean. Page 3.
Norwegian Cruise Line president David Herrera has left the company. His role is being temporarily filled by Harry Sommer, president and CEO of NCL’s parent company, Norwegian Cruise Line Holdings. Page 3.
SUPPLY SIDE: Wine & Spirits
Glenfiddich has unveiled a global travel retail exclusive limited edition 19 YO in partnership with Aston Martin Formula One. Page 5.
Vinarchy – the wine specialist company created from the integration of Accolade Wines and the wine business of Pernod Ricard earlier this year — will make its official travel retail debut in Cannes at TFWA World Exhibition and Conference next month. Page 5.
Henkell Freixenet eyes growth in Asia, the Americas and the Middle East, and will focus on its global icons in Cannes. Page 5.
The Dalamore has launched year two of The Portfolio Series, its annual three-part collection of Highland Single Malt Scotch Whiskies. Page 6.
Confectionery & Tobacco
Italian confectionery company Loacker – which is celebrating it 100th anniversary this year — announces the launch of a new Misto Bontà variety assortment that offers travelers selections of its most popular formats and flavors. The company has also strengthened its commitment to a sustainable future and become a Benefit Corporation. More details on page 6.
PMI Global Travel Retail has introduced two new smoke-free products in European airports. Page 6.
