And now, the main event…

When Funmi Monet debuts her fragrance brand Influxious on Sephora’s website next week, she will become the first fragrance content creator to go from reviewing scents to launching a line of her own. The stakes are high for “the godmother of PerfumeTok,” as one industry veteran called Monet: Retail partnerships with the LVMH-owned beauty giant can overwhelm brands that have never tested their products or messaging at scale. (I have horror stories about brands languishing on Sephora’s shelves right now…) Nor is it a zero-risk venture for Sephora, which co-developed Influxious with the influencer. “Everyone is watching to see if it works,” this person said. “It’s a huge proof point.”

Of course, there are a number of factors working in their favor. A digital-first rollout requires far less up-front capital, for one. But Monet is also testing the market during a boom time for the category. Perfume remains one of the beauty industry’s richest gravy trains, and nowhere is that more apparent than at Sephora, where fragrance sales have exploded in recent years. According to a person familiar with Sephora’s business, fragrance sales rose around 30 percent through the end of 2025 and into Q1 of this year. Growth has since slowed, but the category continues to outpace makeup and skincare. Just as importantly, the fragrance business has undergone a structural shift. A decade ago, indie brands like Tatcha and Drunk Elephant rose to dominance in the skincare space, displacing the incumbent players before selling to Unilever and Shiseido, respectively, for $500 million and $845 million in 2019. Last year, fragrance experienced its own regime change: Kayali became Sephora’s top-selling perfume brand, marking the first time that an indie label displaced legacy houses such as Chanel, Dior, and Valentino. Sephora previously found some traction early on with indie brands like Juliette Has a Gun, but designer labels still controlled the category, according to a person close to the retailer. “It’s really only been in the last year that Kayali was suddenly the number-one fragrance brand, and Phlur broke into the top five, too,” this person explained. “That’s never happened––and when you actually have real volume coming out of those brands, that’s a totally different story. You can put all of your eggs in your niche brands, but if they’re not actually delivering the big volume, you’re not going to get the market share.” The retailer is already planning its next move. In addition to targeted bets like Influxious, according to a Sephora insider, the company has started “working on projects with the major conglomerates that hold the licenses to the designer brands” to produce Sephora-exclusive scents. Until recently, these companies “would never have entertained giving Sephora something exclusively,” the insider added. But now they have to compete with the disruptors.

Naturally, Sephora will have a chance to eat on all sides of the equation. In addition to these partnerships, the company will also continue to develop fragrances with some of its exclusive or bestselling makeup and skincare brands—a strategy that has already produced scents with Rare Beauty, Summer Fridays, and Merit. Rare Eau de Parfum, introduced nearly a year ago, became the retailer’s bestselling fragrance at the time of its launch, according to the person familiar with the business. Next up, I’m told, Summer Fridays will expand its fragrance assortment, while Saie plans to introduce a scent under the nausea-inducing name Nostalgia.

Meanwhile, the broader fragrance market continues to boom across every price point, from Sol de Janeiro body sprays to ultra-premium niche perfumes. At Sephora, however, the center of gravity remains Kayali and Phlur, the retailer's exclusive “new prestige” leaders. Their strategy has been to stake out the market’s middle ground—niche enough to feel distinctive, but still trend-driven with scents that appeal to a mainstream audience. Most importantly, they’re accessible enough to sell at scale, and priced well below the $300 luxury tier. Several smaller indie brands have also gained momentum. I’m told The 7 Virtues—alas, the branding looks like A.I.-generated fragrance slop—and Boy Smells have both seen business pick up considerably at Sephora recently. I’ve also noticed that the retailer has added a handful of niche global brands like Born to Stand Out, Fugazzi, and Montale. Although these brands have established followings—L’Oréal has invested in Born to Stand Out—they’re more niche than Sephora’s usual offerings. Because they are not exclusive to the retailer, Sephora hasn’t promoted them as aggressively. Anyway, the search for the next breakout fragrance has become an industry-wide spectator sport. As Kayali and Phlur mature—both were acquired by private equity firms in 2025—Sephora will inevitably begin looking for the next generation of growth brands. On PerfumeTok, often an early indicator of future mainstream demand, French Cowboy, L’Epoque, and Nostos have all begun generating attention. Each launched within the last year and costs $150 or less. Most tellingly, all three are already stocked by Luckyscent, the independent fragrance retailer in which Monogram Capital Partners acquired a majority stake last year, reportedly with ambitious expansion plans. The next Kayali is probably already out there. The question is which brand gets there first.

Hélène de Tissot, a Pernod Ricard alum, is Chanel’s new C.F.O. [Inbox]

Dior is showing Pre-Fall in Dublin. This should be a nice moment for Jonathan Anderson. (Remember, he is Irish… though actually he is Northern Irish.) [Instagram] Phillip Lim is launching a new brand. I was just chatting with someone about how good 3.1 Phillip Lim was in the late aughts, before it was corrupted by wholesale demands. And, before that, he had Development. Anyway, the name of this new brand is bad, but let’s not hold that against him. [BoF] Rosie Assoulin hosted a dinner for her Target collaboration, launching Saturday. Rosie’s stuff is still so wearable and loveable after all these years: It’s worth taking a squizz. [Target] Loewe opened a temporary ice cream shop in De Beauvoir Town, an amazing neighborhood in London that is not really accessible by train, but houses many potential Loewe customers. (It is where I would want to live if I lived in London, if I couldn’t live in the Barbican.) [Instagram] Jeffries analysts say the Hailey Bieber Gap jeans sold through as well as you can imagine. My analyst, Yasi Salek, of Bandsplain fame, was able to get them easily in Kansas City. So maybe try there? [Proactive Investors] Nike is culling its third-party e-commerce channel in China, its third-largest market, where local brands have overtaken the giant. It’s a gutsy move that suggests how much China’s economy has changed. [Reuters] Bartolomeo Rongone, Moncler’s new C.E.O., and his predecessor, Remo Ruffini, who transitioned to executive chairman earlier this year but retains creative control, are really gelling. The company reported a 9 percent revenue increase in the first half of the year. Sales in Asia for Moncler and Stone Island were both up double digits. [Moncler]

Until tomorrow, Lauren

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