Cult Beauty, a popular online retailer for beauty products, has announced its full-year financial results for the period ending on May 31, 2020. Despite the difficult circumstances caused by the pandemic, the company had a successful year, achieving a remarkable 37.8% growth in sales, totaling £123.4 million. This growth was seen across all markets and categories, with the UK market experiencing the largest increase of 50.4%. In fact, the UK remains Cult Beauty’s largest market, contributing to 47% of its total sales.

The skincare and haircare categories were the main drivers of growth for Cult Beauty, although makeup continued to dominate sales, contradicting earlier reports that it would face challenges during the lockdown period.

An important aspect of Cult Beauty’s success was its expansion into the international market. The company launched its first international domains, introducing a dedicated .com website alongside its existing .co.uk site. It also listed products in euros for the first time and expanded its offerings to countries like Ireland, Germany, Spain, and France.

Surprisingly, the pandemic did not have a negative impact on Cult Beauty’s business. In fact, the company saw “robust trading” during the first UK lockdown, resulting in significant sales growth and the acquisition of new customers.

Although there was a slight decrease in gross profit as a percentage, from 27.7% to 27.5%, Cult Beauty achieved a higher operating profit of £6.4 million compared to £2.5 million in the previous year. The company also saw a significant increase in net profit, reaching nearly £5 million. This strong financial performance can be attributed to higher-margin sales and efficient management of working capital.

Looking ahead, Cult Beauty is optimistic about its future growth prospects. The company’s sales growth in the past year exceeded its five-year plan, and it expects to achieve another year of record sales and profit in 2021. Despite the reopening of physical stores, Cult Beauty aims to retain the new customers it gained during the pandemic. Its marketing team is focused on customer acquisition and retention through engaging promotional activities.

In conclusion, Cult Beauty’s full-year results demonstrate its resilience and ability to thrive in challenging circumstances. The company’s strategic expansion into international markets and its focus on customer acquisition position it for continued success in the highly competitive beauty industry.

For more information on Cult Beauty, you can visit their official website here. Additionally, to stay updated on the latest beauty trends and products, you can visit their blog section here.