The New York Times reminds us about the lipstick index today. The Lipstick Index is a financial barometer that says cosmetics sales go up in bad economic times. Lipstick sales are up 40% over the past few months. The reasoning is that if you can't afford the new coat or cocktail party outfit this season, at least you can still buy a small treat such as lipstick.

They note that bright red colors are out and the most popular lipstick hues right now are pinky browns and rosy taupes.

Shown here, the MAC Lipstick - Viva Glam VI a clear, smooth, pure neutral pink.

Bare Escentuals Foundation continues to be the best selling beauty product on Amazon. It's held the number one position for eons.

But how is the company holding out over all in these tough times?

They just reported their third quarter results a few days ago and net sales are up about three percent over last year at $130 million. Net income is up 12% over last year at $23 million.

But one reader of The San Francisco Business Times says these results are far from 'rosy'. She says;

"This recap is completely misleading. The company just cut their sales growth for the 2nd time this yr and cut their 2008 earnings forecast. Their boutiques had same store sales down 20-30% which is horrific, yet they're not slowing down store growth. Premium wholesale sales were down 5% vs estimates of up 22% growth, and inventories are up 53% despite a slow 3% sales growth. 2009 earnings will likely be down year over year vs the company's expectation of 10-15% long term earnings growth and last year's 46% growth. The story is unraveling and the co admitted to what most other retailers have said, September and October trends have softened materially. Note also that Avon and loreal both had crap numbers today. Makeup is not immune."