E.l.f. Beauty is going digital, after announcing that it plans to close its 22 bricks-and-mortar stores. The colour cosmetics brand is making the move following a difficult year that saw net sales decrease by 1 percent.
“2018 was a challenging year with net sales of $267 million, down one percent from last year, driven by headwinds in tracked channels,” said Tarang Amin, e.l.f.’s Chairman and Chief Executive Officer, in a statement. “Going forward, we will be laser-focused on reasserting e.l.f.’s core advantage to delight beauty enthusiasts with prestige-quality cosmetics and skin care at an extraordinary value. We intend to do this by driving demand in our brand, focusing on key, first-to-mass products, getting the right assortment and placement on-shelf and on-line and generating the cost savings to help pay for these investments.”
The brand’s stores contributed 5 percent of net sales in 2018, to enable “a reallocation of investment against the e.l.f. brand and prioritization of national retailer and digital channels”. John Bailey, the company’s President and Chief Financial Officer will also be stepping down from his role from March 31.
E.l.f. has cultivated a reputation for fun, vibrant makeup at affordable prices, and has boosted its popularity over the past year via collaborations with everyone from micro influencers to heavyweight fashion designers such as Christian Siriano.