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Published
Apr 12, 2022
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Warpaint London growth continues as new trading year begins strongly

Published
Apr 12, 2022

In a pre-final results update on Tuesday, Warpaint London said group sales at the beauty specialist in the first three months of 2022 were around 60% ahead of a year ago, with sales increases seen across all its brands.


W7


And it also flagged news of strong trading for the year and continuing positive Q1 momentum when it releases its trading figures for 2021 on 26 April. Also expect an announcement on a major new UK client.
 
Gross product margin has improved for the opening quarter of 2022, against the level achieved in the prior year, “despite increased costs in the supply chain, particularly in respect of freight”.

Importantly, sales of the group's key W7 branded products through Tesco stores “continue to perform well”, with more stores and space being allocated to the group across the supermarket giant’s estate.
 
In February, Warpaint (no relation to the men’s cosmetics brand of the same name)  also launched 45 W7 products in an initial 80 Boots health & beauty stores and the brand is “performing in line with group management’s and Boots' expectations".
 
And for the icing on the cake, it also announced it has secured a “significant contract with a further major UK grocer” to produce a range of all year-round products and Christmas gifting.
 
Elsewhere, Warpaint’s activities in the US continue to grow, helped by the addition of taking on a number of experienced US-based salespeople, “resulting in six new accounts being opened in the US, headlined by a “significant” order from CVS to be delivered in September.
 
Meanwhile, online sales “continue to accelerate”, ahead 29% year-on-year in Q1, boosted by W7 brand sales in China, following the launches in 2021. Online sales in China are growing month-on-month and the board believes that over the next 18 months online revenues in China will make a meaningful contribution to the group's online sales”, it noted.
 
On the environment and sustainability front, which includes its drive to reduce plastics, Warpaint has also appointed Kevin Laughton group packaging technologist and sustainability lead.  He will focus on ensuring compliance with legislation and help “ensure the use of environmentally sustainable materials while focusing on the core group strategy of producing affordable quality cosmetics”.

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