Smaller beauty brands are shaking up the retail space by achieving faster-growing sales than their big name competitors. Independently owned and operated brands with under $300 million in revenue, called "indie beauty brands" by NielsenIQ in a new report, are rising fast online and outpacing their conglomerate competitors in-store.

Estée Lauder topped analysts’ profit and revenue expectations, aided by sales and market share gains in China and customer growth in the US. The parent of brands such as Clinique, Tom Ford, and Aveda said its results marked the start of its return to growth under a turnaround plan. Estée Lauder’s stronger-than-expected quarter shows that accessible pricing and product innovation is essential to growth in beauty, especially as competition continues to intensify. Gap Inc., for instance, is launching Old Navy Beauty, a youth-focused line of body mists and scents. Its move shows that even apparel retailers are muscling into beauty to lure Gen Z consumers, providing new pressure on established beauty brands.

Estée Lauder posted a wider quarterly loss as sales slumped and warned that tariffs could reduce earnings by about $100 million over the next year. Estée Lauder is taking necessary steps to turn around its business—focusing on product innovation, cutting costs, and broadening its customer reach—but it will be tough given intense competition in the beauty market. With key rival L’Oreal gaining US momentum and newer brands emerging, Estée Lauder must accelerate product innovation, reduce reliance on discounting, rebuild momentum in China, and take other steps to win new customers, or risk ceding more ground in the longer term.

US beauty demand is normalizing as price sensitivities creep into purchasing behavior: That’s good news for e.l.f. Beauty but an added struggle for Coty and Estée Lauder, for which China remains a hurdle.

Prestige fragrance sales soar as Gen Zers embrace scent wardrobes: That trend helped Spanish beauty company Puig deliver double-digit growth in its perfume division in Q3.