The Hut Group takes over online beauty retailer Cult Beauty for £275 million

Cult Beauty was co-founded in London in 2007 by Jessica DeLuca and Alexia Inge as an online specialist retailer of rising, status beauty manufacturers throughout skincare, haircare and cosmetics.
Independent status beauty manufacturers
Today, Cult Beauty shares about 300 status beauty manufacturers – together with Charlotte Tilbury, Drunk Elephant and Huda Beauty – lots of them (over 70%) being impartial. According to The Hut Group, round two-thirds of those manufacturers usually are not at the moment listed on the group’s different beauty websites. The UK e-commerce big sees this as an essential alternative to finish its providing.
“Cult Beauty is continuously the accomplice of selection for rising indie manufacturers as a result of its personalised, content-led strategy and enthusiastic client base who’re frequently looking for new, modern options to enrich their beauty routines,” THG chief govt Matthew Moulding mentioned. “Cult Beauty’s first-to-market status makes the model an thrilling match for our THG Beauty division,” he added.
The Hut Group plans to maintain Cult Beauty’s separate branding and identification intact. “Due to its distinguished model portfolio, Cult Beauty will retain a really clear identification inside THG Beauty,” highlighted the corporate in a press release.
International growth
According to The Hut Group, this acquisition may even be a chance to develop Cult Beauty’s worldwide attain. Indeed, at the moment lower than 50% of Cult Beauty’s gross sales are made exterior the UK.
“We anticipate absolutely migrating Cult Beauty onto the THG Ingenuity platform by the tip of the 12 months (inside the first six months of acquisition), giving the model entry to the worldwide digital options to underpin important future development,” mentioned Matthew Moulding.
The acquisition will assist The Hut Group to higher tackle customers’ preferences globally. “THG Beauty will principally service clients inside North America through our Dermstore and Lookfantastic manufacturers, whereas within the UK, Europe, Asia and the Rest of the World the important thing manufacturers might be Lookfantastic and Cult Beauty,” detailed Matthew Moulding.
The Hut Group expects Cult Beauty to contribute gross sales of about £60m and adjusted EBITDA of about £3m for the rest of FY 2021, and contribute gross sales of roughly £140m and adjusted EBITDA of £10m in FY 2022.
Most lately, Sephora introduced the acquisition of Feelunique, one other main online retailer of status beauty merchandise within the UK.

https://www.premiumbeautynews.com/en/the-hut-group-takes-over-online,18868

Recommended For You

About the Author: Jessica