Portuguese beauty retailer Perfumes & Companhia is expected to benefit from the resilience of the labor market.
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(1) In early 2026, the Portuguese labor market remained resilient: the unemployment rate in the first quarter was around 6.0%-6.1%, dropping to as low as 5.8% in some months. A strong labor force participation rate supported private consumption of various retail goods, including selected beauty products. (2) The employment situation is closely linked to the demand for products such as high-end and affordable perfumes and skin care items. Despite external adverse factors such as energy prices and trade concerns, data from early 2026 show that, thanks to steady support from disposable income, consumer demand continued to improve. (3) Although hiring growth may slow in 2026, the existing employment base can still sustain the consumption environment for beauty and personal care expenditures. Perfumes & Companhia's continuously expanding e-commerce platform targets both price-sensitive and high-end shoppers. The European Commission forecasts an unemployment rate of about 5.9% in 2026, consistent with the data above, suggesting that retailers will face an overall favorable environment throughout the year.
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