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Cult Beauty sales surge as new customers are acquired in the UK and Europe

Beauty e-tailer cult Beauty submitted year-round results for the 12 months to May 31, 2020 and enjoyed what was called “another great year” despite the pandemic’s impact for more than two months. Is shown.

Cult beauty

In a report filed with Companies House, the company states that sales grew 37.8% to £ 123.4m, growing in all markets and categories. The UK market achieved the highest growth with a 50.4% increase and remained the largest single market, accounting for 47% of total sales, up from 43% in the previous year.

Despite the greatest growth in skin and hair care, make-up is “a dominant position in sales, despite widespread reports that make-up is a difficult category to shift during the blockade. Was maintained. ”

The company also launched its first international domain by adding the .com website to the existing offers on the site as part of its ongoing international expansion. Its international expansion included for the first time products listed in the euro. Locally optimized cult beauty offers are now available in Ireland, Germany, Spain, the Netherlands, Italy, France, Poland, Slovakia, Slovenia, Cyprus and Malta.

As mentioned earlier, the pandemic doesn’t seem to be squeezing the business, with “strong deals” during the first UK blockade that began last March, with sales and new customers “significantly.” It is said that it has increased.

However, despite the significant increase in sales, the gross profit margin fell slightly from 27.7% to 27.5%. Given some of the tough times in the fiscal year, that’s a good result, with higher profit margins from a combination of brands and categories, although the higher costs of servicing the international market offset some of the profits. I was helped by sales.

However, the company was able to achieve significantly higher operating profit of £ 6.4m, up from £ 2.5m in the previous year. Net income ranged from £ 2.5m to around £ 5m, with “strong cash flow and efficient management of working capital” resulting in a final cash balance of £ 22.3m on a “strong” balance sheet. It is said that it is.

According to the company, annual sales growth has exceeded the five-year plan, and further growth is expected on an ongoing basis. In many respects, the pandemic helped run a large influx of new customers that they probably wanted to retain, even if the physical store reopened. To help with this, the company’s marketing team said it focused on acquiring and retaining customers “by combining tactical and engaging promotional activities.” As a result, we anticipate a record year of sales and profits in 2021.

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Cult Beauty sales surge as new customers are acquired in the UK and Europe

Source link Cult Beauty sales surge as new customers are acquired in the UK and Europe

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