PORT WASHINGTON, N.Y.—The NPD Group reported high-end beauty products perform well in the first quarter of 2011, with March sales up 2 percent from the same month a year ago. Sales of prestige fragrances fared the best, with dollar sales up 6 percent for the month. Year-to-date, the NPD Group said sales of total prestige beauty products are at $1.98 billion—an increase of 5 percent from the first three months of last year. Fragrances' dollar sales are up 6 percent, makeup 5 percent and skin care 6 percent.
Marketing Daily reported Karen Grant, vice president/global industry analyst for NPD's beauty sector, attributed some of the gains to shoppers settling into a more pragmatic idea of luxury. "People are really spending smart," she said. "It's a quality thing—'When I spend,' they're saying, 'I want something I really love. I need to know I will enjoy this purchase to make it worth the money.'"