Fortune500 News Hubb
Advertisement Banner
  • Home
  • Fortune 500 News
  • Business News
  • Contact
No Result
View All Result
  • Home
  • Fortune 500 News
  • Business News
  • Contact
No Result
View All Result
Wellnessnewshubb
No Result
View All Result
Home Fortune 500 News

Morphe makeup is closing nearly 20 stores in the U.S.

admin by admin
January 5, 2023
in Fortune 500 News



Morphe makeup, which rode the power of social media stars to rapid growth and a $2 billion valuation, said it’s planning to close all its US stores. 

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

Partnerships with powerhouse internet celebs such as Jeffree Star and James Charles helped revenue top $400 million in 2019, according to a company presentation from December 2021 reviewed by Bloomberg. But Morphe severed ties with them after Star was accused of using racist language in 2020 and allegations of sexual misconduct plagued Charles in 2021.

Results at Forma, which generates about 80% of its sales from Morphe, have since suffered. Revenue missed internal planning by about 20% in 2021, according to the document. In the first 10 months of that year, revenue tied to Charles, Star and Jaclyn Hill — another social media star — fell by 66% to $32 million.

The company’s descent from beauty-world darling known for its accessibly priced eye shadow palettes and frenzied store openings 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 relevant.”

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





Source link

Previous Post

UK sales of electric cars overtake diesel for first time

Next Post

20 Republicans Use Trumpian Tactics While Ignoring Trump: Expert

Next Post

20 Republicans Use Trumpian Tactics While Ignoring Trump: Expert

Recommended

Ex-Twitter Engineer Worries How Elon Musk Will Treat User Data

3 months ago

Musk Met With GOP and Dem House Leaders to Discuss Twitter Fairness

10 hours ago

Cotopaxi says its purpose-driven mission is such a draw that 3,000 people applied for one job opening

2 months ago

George Santos Under Investigation for Campaign Lies: Prosecutors

4 weeks ago

Southwest Airlines (LUV) Q4 2022 Earnings Call Transcript

10 hours ago

FTX says it is probing ‘abnormal transactions’ after potential hack

3 months ago

© 2022 Fortune500 News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Fortune 500 News
  • Business News
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Fortune 500 News
  • Business News
  • Contact

© 2022 Fortune500 News Hubb All rights reserved.