Morphe Makeup is closing nearly 20 stores in the US
Morphe Make-up, which led the social media stars’ power to rapid growth and a $2 billion valuation, said it plans to do so vicinity all of its US stores.
As of Thursday, the company listed about twenty locations on its website. Forma Brands, Morphe’s parent, did not respond to a request for comment. Morphe also sells through its e-commerce site and Ulta Beauty.
Partnerships with internet powerhouses like Jeffree Star and James Charles helped sales surpass $400 million in 2019, according to a December 2021 Bloomberg-verified company presentation. But Morphe severed ties with them after Star was accused of using racist language in 2020 and Charles was plagued by allegations of sexual misconduct in 2021.
Results at Forma, which derives about 80% of its sales from Morphe, have suffered since then. According to the document, revenue missed internal planning by about 20% in 2021. For the first 10 months of this year, revenue for Charles, Star and Jaclyn Hill — another social media star — fell 66% to $32 million.
The company’s descent from the darling of the beauty world, known for its budget-friendly eyeshadow palettes and frantic store openings, highlights once again the danger of playing on social media frenzy.
“It’s a risky model,” said Kelly Dobos, a cosmetic chemist who works as an industry consultant. Influencers “are becoming less and less relevant”.
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