Tarte Cosmetics sales improved 6.8% to 15.6 billion yen (US $ 136.5 million) in the company’s first half of fiscal 2021, consumer spending in North America and in Europe having resumed with the end of pandemic restrictions.
This stabilizes the premium makeup market and Tarte is seeing strong repeat sales rates for concealers like its Shape Tape Contour Concealer.
In 2014, KosÃ© acquired a 93.5% stake in Tarte Cosmetics for an amount of US $ 135 million in order to gain a foothold in the US market.
After the acquisition, the group worked with Tarte to develop the vegan beauty brand Awake, which debuted in 2018.
KosÃ©’s brand portfolio also includes DecortÃ©, Sekkisei, Addiction and owns the licensing agreements for Jill Stuart and Paul Stuart.
In 2020, Tarte was severely affected by lockdowns and restrictions linked to the COVID-19 pandemic
Despite the strength of its e-commerce sales, growth was not enough to offset the decline in physical sales. The decline saw the company’s sales in North America decline 22.3%.
Sales of Tarte, coupled with strong sales in China, helped increase KosÃ©’s overseas sales ratio to 42.4% while domestic sales declined.
The performance of the Tarte was in line with previous forecasts and KosÃ© is now optimistic about the performance of the entire year. “better than expected” With the impetus of the end-of-year sales.
However, several major concerns remain, including the release of the Delta variant which could derail the brand’s takeover.
As such, the group has highlighted several key areas on which it will work to maintain the growth of the brand.
With the recovery of bricks and mortar, e-commerce has experienced a decline in North America and Europe.
To counter this, the company said it would invest more in Tarte’s e-commerce business, which is currently operated by Tarte in the United States.
In addition, he plans to increase the brand’s presence on Tmall by increasing sales activities on the platform.
On the other hand, KosÃ© said he hopes to increase sales of Tarte in new channels like Target and Kohl’s in the United States. It also plans to increase its presence in Europe by opening more doors to the market.
On the product side, the brand intends to focus on concealers, as well as other flagship categories such as mascara.
In the first half of the year, KosÃ© Corp’s net sales edged down 0.4% as sales were negatively affected by the pandemic in China and most other markets except China.
Operating profit increased 121% due to lower cost of sales and cost control measures.
The cosmetics business recorded an increase in sales of 4.1% and an increase in operating profit of 33.2%.
The growth was attributed to strong sales of DecortÃ© in China, while Albion, Addiction, Sekkisei and Jill Stuart saw their sales increase in Japan.
Despite the strong sales in China, as well as the recovery in North America and Europe, KosÃ© does not expect total sales to reach his initial forecast by December 2021, especially given the weak performance of his company. domestic market.