BeautyHealth said on Thursday it was planning to double the size of its business by 2025, building on demand for its flagship HydraFacial skin treatment devices as affluent customers drive up skincare sales.
Inflation-hit consumers are treating themselves to smaller luxuries such as beauty products and services, keeping alive a renewed focus on health and wellness that was fanned by the pandemic.
In its first unveiling of a long-term target, BeautyHealth forecast net sales of $600 million to $700 million in 2025, up from $260.1 million last year.
“BeautyHealth sits at this really exciting intersection of large and growing categories: beauty, aesthetics, wellness and health,” Chief Executive Officer Andrew Stanleick told Reuters.
“What we’re benefiting from is real societal shifts in beauty, health and wellness in all countries, which has been accelerated by COVID.”
Apart from the resilient nature of beauty demand during economic downturns, BeautyHealth also benefits from a relatively affluent customer base with an average annual household income of $94,000.
The company has penetrated 5% of the around 500,000 medical, spa and hospitality establishments in its 16 direct markets, and it plans to enter more with its HydraFacial delivery systems.
Brand awareness and acquiring complementary businesses are also areas of focus for the firm.
Long Beach, California-based BeautyHealth has already partnered with hotel operator Marriott International, cosmetics retailer Ulta Beauty and healthcare chain Advanced Dermatology and Cosmetic Surgery.
On Thursday, the company said its tie-up with LVMH-owned beauty chain Sephora will next year expand to the Asia-Pacific, a key growth driver for skincare firms.
It also expects to triple its adjusted core earnings (EBITDA) margin in 2025 to between 25% and 30%, compared with 12.6% last year. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath)
