People in the beauty biz tend to believe in the magical Lipstick Index, or the idea that they're safe from financial downfall because, despite how broke people get, buying makeup will lift their spirits and keep beauty bigwigs in business. Well, that's wrong, apparently, and there are numbers to prove it, as firms took a big hit for the quarter that ended on March 31. Procter & Gamble (which makes Cover Girl, Fekkai, Max Factor, Olay, and SK-II) lost 14 percent of its earnings, while IFF (makers of fragrance flavors and scents) lost $37 million in sales. Nu Skin also took a hit, losing 12.2 percent of its income. This recession is doing ugly things. What better time to go buy a $3.99 lipstick at Duane Reade and pretend you're saving the world?

Beauty Firms Hit by Economy [WWD]