Morphe makeup is closing nearly 20 stores in the US

Morphe makeup, riding the power of social media stars to rapid growth and a $2 billion valuation, said it plans to close all US stores.

As of Thursday, the company listed about twenty locations on its website. Forma Brands, Morphe’s parent, did not respond to a request for comment. Morphe also sells through an e-commerce site and Ulta Beauty.

Partnerships with powerhouse internet celebs like Jeffree Star and James Charles helped bring in more than $400 million in revenue in 2019, according to a company presentation from December 2021 reviewed by Bloomberg. but Morphe their relationship broke after Star accused to use racist language in 2020 and allegations of sexual misconduct that Charles was accused of in 2021.

The results of Forma, which generates about 80% of its sales from Morphe, have since suffered. Internal revenue is projected to drop by nearly 20% in 2021, according to the document. In the first 10 months of that year, the income was tied to Charles, Star and Jaclyn Hill – another social media star – fell 66% to $32 million.

The company descends from the beauty-world darling known for its affordable eye shadow palettes and confused The store opening once again shows the danger of betting on social media buzz.

“It’s a risky model,” said Kelly Dobos, a cosmetic chemist who works as an industry consultant. Influencers “always become less important.”

Our new weekly Impact Report newsletter explores how ESG news and trends are shaping the roles and responsibilities of today’s executives. Subscribe here.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *