Morphe makeup, which is riding fast on social media star power and is valued at $2 billion, says it plans to near all its US stores.
On 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 powerhouse internet celebrities such as Jeffree Star and James Charles helped top revenue of $400 million in 2019, according to company presentations from December 2021 reviewed by Bloomberg. But Morphe cut ties with her after Star was accused of using racist language in 2020 and sexual misconduct allegations hit Charles in 2021.
Results at Forma, which generates about 80% of sales from Morphe, have suffered. Revenues missed internal planning by around 20% in 2021, according to the document. In the first 10 months of the year, the revenue associated with Charles, Star and Jaclyn Hill – another social media star – fell 66% to $32 million.
The derivative company of the beauty-world darling known for accessibly priced eyeshadow palettes and frenzied store openings once again shows the dangers of betting on social media buzz.
“It’s a risky model,” said Kelly Dobos, a cosmetic chemist who works as an industry consultant. Influencers are “always becoming less relevant.”
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