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A Snapshot Report on Beauty Consumers’ Reactions to the Economy

December 2009 UpdateThe NPD Group, Inc.Beauty Consumer

Copyright 2009. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.

A Snapshot Report on Beauty Consumers’ Reactions to the Economy

2Proprietary and Confidential

Table of Contents

Objectives and Methodology 3Executive Summary 4-7Detailed Findings

– Cross Category Spending Expectations 9– Trended Spending Expectations– Cosmetics/Fragrances (Nov 08-Nov 09) 10– Spending Cuts By Category 11-12– Beauty Treatments/Services Would Not Go Without 13– Economy Related Statement Ratings 14-15– Channel Shopping for Beauty 16– Shopping Dynamic Statement Ratings 17– Department Store Beauty Shopping And Purchasing Behavior 18-20– Department Store Beauty Brand/Product Usage 21– Typical Shopping Behavior Statement Ratings 22– Emotional Motivators for Beauty Shopping 23-24– Category spending if $100 Disposable Income Available 25-26

Appendix 27About NPD 32

A Snapshot Report on Beauty Consumers’ Reactions to the Economy

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Study Objective & Methodology

Study Objectives

To evaluate the current state of the economy’s impact on shopping behavior as it relates to beauty.

Impact was first measured in Nov 2008 and updated in April 2009,portions of which were highlighted at NPD Beauty’s “Hot Off the Press” Event in January 2009. In this updated report, we will again measure impact relative to the prior two studies.

Methodology

A nationally representative sample of women 18+ were invited to complete the online survey for this study and screened as beautyshoppers. The source of this online sample is from The NPD Group’s proprietary Registered Online Panel of which there are over 600,000 active panelists.

The results that follow are based on completed surveys from 2,217 total respondents, with 1,935 past year beauty shoppers qualifying to complete the survey.

Field work was conducted in November 2009 and is trended to datafrom the April 2009 study, as well as the benchmark study conducted in November 2008.

Information from NPD’s Consumer Spending Indicator/Economy Tracker (November 2009) is also referenced in this report.

A Snapshot Report on Beauty Consumers’ Reactions to the Economy

4Proprietary and Confidential

About NPD

ABOUT NPD BEAUTYNPD Beauty is a division of The NPD Group, the authority and leading provider of sales and marketing information for the beauty industry. NPD Beauty introduced the first retail point-of-sale tracking service for beauty in the U.S. department stores in 1996. Since then, the Beauty division has developed a line of products and services to address the needs of the growing fragrance, color cosmetics and skincare industries. This includes shade-level detail in makeup, weekly data in fragrances, scent and concept testing and ad-hoc and in-depth consumer reports on issues that impact the clients’ bottom line.

ABOUT THE NPD GROUP, INC.The NPD Group, Inc. (NPD) is a global market information company that measures product movement and consumer behavior across a broad range of industries - apparel, automotive products, consumer electronics, cosmetics and fragrances, food, foodservice, footwear, housewares, information technology, interactive entertainment, toys and music.NPD's clients, many in the Fortune 500, use this insight to uncover market opportunities, strengthen channel relationships and benchmark industry performance. Since 1967, NPD has introduced numerous industry firsts, most recently combining and calibrating information from consumer panels and point-of-sale tracking via its flagship services, the NPD Worlds. The firm has offices and affiliations in 60 countries.For more information on The NPD Group, visit www.npd.com.