As an industry that has a value of around $532 billion, cosmetic stocks may be worth considering in order to diversify your trading portfolio. Ranging from design, manufacturing, and retail products — including makeup, skincare, perfume and hair products — cosmetic companies have considerable growth and are dynamic when it comes to stock trading online.
The industry has boomed, particularly in online sales, which can be attributed to the rise of beauty bloggers, bloggers, and influencers. The global cosmetics as a whole, saw its market worth grow by 4% between the years 2019-2020, and this is set to continue into 2021 and beyond.
It’s not just the traditional cosmetic companies that are making waves on the stock market. As beauty companies become newly public, we’ll explore the latest corporations on the London Stock Exchange (LSE), which you should consider adding to your investment portfolio.
As an expanding company both online and in-store, Revolution Beauty began its admission to the (LSE) securities market back in July 2021. Its debut on the stock exchange valued the share price at £170 and the overall company as £500million, but the beauty brand plans to capitalize on long-term growth.
According to the LSE, Adam Minto, CEO of Revolution Beauty Group, commented:
“Admission to AIM is an extraordinary stage in our journey and reflects our exceptional growth to date, global presence, and significant prospects.
“There remains a considerable opportunity and we are now in the best possible position to broaden our global reach and deliver against our significant growth prospects in a beauty market that has very compelling dynamics for an agile and inclusive business like ours. We welcome our new investors and look forward to the future with excitement.”
Revolution Beauty was established in 2014 by Minto alongside fellow makeup industry expert, Tom Allsworth. Together they own a 52% stake in the company, with 48% originally owned by investment firm TSG Consumer Partners in 2017.
As a result of the company’s admission to the LSE, TSG Consumer Partners sold the majority of its stake, essentially replaced by Jupiter Asset Management, who bought £90 million worth of shares in the movement.
The proceeds from selling shares in this way have helped the cosmetics company to execute its growth plans. In this month alone, Revolution Beauty announced plans to expand into over 350 Boots stores in the UK. This comes after impressive sales results, and a 35% rise in half-year revenues from the prior year — a total of £78 million.
The company also saw a rise in sales by over 90% as it launched in 1,800 Target stores in the US. And sales are expected to increase throughout September and December 2021, as the beauty industry enters it seasonal peak trading period.
After just a few months of being listed on the LSE, it seems Revolution Beauty has certainly gained momentum, and the future looks promising for the value of this cosmetic stock.
Formerly known as the Hut Group, the eCommerce company THG, based in Manchester, England, plans to list its beauty division separately on the stock exchange by 2022. The sector of the business, THG Beauty, includes brands such as Lookfantastic, Glossybox, and Espa. It comes as no surprise that they’re considering separating this aspect of the business, as it is particularly fast-growing.
THG Beauty reported sales of £461 million in the six months to the end of June in recently published results — a significant increase on the £296 million in the same period last year. It is thought the separate listing for the beauty division will allow the business to invest in this key growth area, as well as expand its an own-brand portfolio.
According to analysts, the separate listing will value the beauty part of the business at £4 billion. The overall market value of THG stands at £7.6 million, after going public in 2020.