Cult Beauty, a popular online beauty retailer based in the UK, has reached a significant milestone by surpassing £100 million in sales for the first time in 2019. In a recent interview, founder Alexia Inge shared that sales had seen an impressive increase of almost one-third, reaching a total of £104 million. What’s more, the company’s earnings experienced a substantial jump of 94% to £5.7 million. Inge attributed this remarkable growth to the economies of scale and operational efficiencies made possible by the implementation of a new distribution center.
One of the factors contributing to Cult Beauty’s success is its ability to thrive in an industry often overcrowded with beauty products. Inge highlighted the trust and loyalty of their customers who rely on the platform to receive the best advice. Currently, international sales make up 59% of the company’s total sales, with European sales experiencing a significant increase of 25%. Additionally, Cult Beauty has seen improvements in conversion rates, indicating a high level of customer engagement and satisfaction.
In 2019, there were rumors circulating that Cult Beauty was seeking a buyer or investor to support its expansion plans. However, so far, there have been no recent developments on this front. Inge clarified that while she is still exploring potential opportunities, her primary focus remains on driving profitable growth. Despite being an internet-based business, Inge has always prioritized the bottom line, ensuring the company’s financial health and sustainability.
Recent financial reports for Cult Beauty Limited, covering the fiscal year from June 1, 2018, to May 31, 2019, were also released last month. The accounts revealed a remarkable sales increase to £89.6 million, up from a restated £66 million in the previous year, representing a year-on-year growth rate of 36% across all categories and geographic areas. While the UK market remains the largest for Cult Beauty, accounting for 43% of the company’s sales, revenue from non-UK markets grew at an even faster rate. The company’s gross profit margin saw a slight decline to 27.7% from 28.8%, primarily due to increased international operations and higher servicing costs. Consequently, the final profit for the year decreased to £2.129 million from £2.944 million.
Overall, Cult Beauty’s exceptional sales growth and increased earnings illustrate the company’s ability to thrive in a competitive market by providing quality beauty products and trustworthy advice to its loyal customer base. As the company continues to explore opportunities for expansion, it remains focused on driving profitable growth while maintaining a strong financial foundation.