Sephora sees substantial gains owed to Rihanna’s Fenty Beauty launch
Sephora has seen some significant gains within the past year, and according to YouGov BrandIndex it may all be due to the launch of Rihanna and her Fenty Beauty line. The beauty retailer launched the “Diamonds” singer’s cosmetics venture earlier this year and in late November, made itself one of the few locations where the brand’s highly-coveted red lipstick, Stunna, would be available for purchase.
The Paris-based and LVHM owned retailer also had a significant amount of growth in its perception during the first 11 months of the year, according to metrics uncovered from the research. Four categories in which major improvement was seen include: buzz, quality, impression and word of mouth.
Though it was a fifth category where Sephora persevered in a resilient way, which was through purchase consideration. YouGov BrandInex reports that the number of consumers who admitted to considering shopping at the retailer for their next beauty purchase rose from 15% to 24% — the highest it’s been in a year.
The second-largest change in metrics came from October to November, where word of mouth increased to 17% between women aged 18 years old and older. Among the launch from the “Work” singer, Sephora had other notable collaborations with big names within the beauty industry, including Kat von D, which seem to have influenced these changes.
Using big names to draw in consumers is a tactic that’s been on the rise with many other notable beauty brands. SinfulColors recently named actress Vanessa Hudgens as global color collaborator, L’Oréal Paris recruited actress Aja Naomi King as a spokesperson and CoverGirl launched a new line of lipsticks with actress and writer Issa Rae, among other notable faces in both television and film.
L’Oréal Paris taps Aja Naomi King as latest celebrity spokesperson
Actress Aja Naomi King, best known for her role as Michaela Pratt on the series “How to Get Away with Murder” has been announced as the newest spokeswoman for L’Oréal Paris. Aja joins the company’s long list of celebrity endorsers which includes Julianne Moore, Eva Longoria, Elle Fanning and Camila Cabello
“Growing up, I watched my mom apply her makeup in the morning and wanted so badly to be part of that daily ritual with her. Seeing how much she enjoyed putting makeup on, including her go-to L’Oréal Paris Colour Riche Lipcolour, inspired me to love makeup as much as she did,” Aja Naomi King said. “Makeup became my armor growing up. It provided me with a sense of protection and gave me the power and confidence to face the world in the way I wanted. To now represent L’Oréal Paris is incredibly overwhelming. I am so excited to help others find and believe in the beauty of who they are because everyone deserves to know their own worth.”
Aja will star in television, print and digital advertising campaigns beginning in early 2018 for hair, skincare and cosmetics. The first product the actress will star in a campaign for will be the New York City-based company’s True Match Lumi Glow — a new five production collection designed to create an effortless and luminous glow, the brand said.
“In welcoming Aja to the L’Oréal Paris family, we are thrilled to strengthen our diverse roster of spokeswomen and further connect with a younger generation of consumers,” Tim Coolican, president, L’Oréal Paris USA said. “Aja has openly and powerfully shared her journey to overcoming feelings of self-doubt and as such, inspires others to embrace their own beauty and self-worth. She is incredibly talented, accomplished and most importantly, fully understands and embraces our brand philosophy of ‘Because You’re Worth It'”.
The Los Angeles native also will serve as a presenter at L’Oréal Paris’ Women of Worth celebration, which honors ten inspiring women who are making a difference in their communities across the country.
Ulta Beauty surpasses Q3 earnings estimates
Net income increased 19.5% to $104.6 million, or $1.70 a share, in the quarter ended Oct. 28, compared to $87.6 million, or $1.40 per share, in the year-ago period. Analysts had expected earnings of $1.66 a share.
Net sales increased 18.6% to $1. 34 billion from $1.13 billion last year. The retailer estimated approximately $14 million in lost sales due to Hurricanes Harvey and Irma.
Total same-store sales increased 10.3%, compared to an increase of 16.7% last year, and were driven by 6.0% transaction growth and 4.3% growth in average ticket. The company estimates that Hurricanes Harvey and Irma resulted in approximately 100 basis points of negative impact to comparable stores sales in the third quarter of fiscal 2017.
E-commerce sales grew 62.9% to $119.8 million from $73.6 million last year, representing 370 basis points of the total company comparable sales increase of 10.3%.
“Our third quarter results clearly demonstrate the strength and distinct advantages of the Ulta Beauty business model,” said Mary Dillon, CEO. “We delivered double digit comparable sales growth, in spite of a moderation in the growth rate of our largest category — makeup — and meaningful disruption from hurricanes. We flexed our merchandising and marketing plans, leveraged our consumer insights and CRM platform, and worked with our brand partners to create compelling offers for our guests.”
Ulta expects fourth-quarter sales between $1.93 million to $1.96 million, with a same-store sales increase of 8% to 10%. It estimated fourth-quarter per-share earnings between $2.73 to $2.78. Analysts were looking for earnings of $2.83 a share on sales of $1.93 billion and a same-store sales increase of 9.4%
During the third quarter, the retailer opened 48 stores. It ended the quarter with 1,058 stores.