New Jersey woman Katie (@llewynthecat) has gone viral after feeling short-changed over a Sephora freebie. But is her upset justified?
In the clip, which has amassed 118,100 views, she held up a bottle of Gisou hair oil to the camera—the bottle was less than half full.
“What the hell is this, Sephora?” she asked. “I just got this as part of the minis that you get if you spend $90 on Sephora right now. And this is how much I got in my thing that was already only 0.1 ounces.”
“And like, I know it was free, but come on, it’s not even halfway full,” she added. “What am I supposed to do with this? Like, the packaging isn’t even oily. And neither is anything in this bag. So, like, it’s not like it spilled. It just wasn’t ever full. Come on.”
Tagging Sephora in the description, Katie added, “I know this was free but this was so disappointing.”
“Not to mention they shipped it separately from my order, which isn’t coming until tomorrow. Yes, I know this is a champagne problem, please let me complain.”
The TikToker didn’t immediately respond to The Mary Sue’s request for comment via TikTok comment.
In the comments, users couldn’t believe how empty the bottle was. “That’s like 2 drops,” one wrote. That’s a pill size,” another added. “No way we’re letting companies give us half full bottles,” a third said, shocked.
And a fourth quipped, “A packet of soy sauce has more product than what’s in there.”
Meanwhile, a fifth speculated, “They give influencers more, which is disappointing since we’re actually paying for it,” while a sixth suggested, “We should boycott Sephora.”
Sephora and Gisou didn’t immediately respond to The Mary Sue’s request for comment via email.
Shopper feels short-changed by Glossier Sephoria freebie
Katie isn’t the only one to draw the short straw when it comes to certain Sephora freebies.
As part of Sephora’s Beauty Insider program, customers enrolled can collect a free birthday reward, which usually consists of a box of travel-sized products like makeup, skincare, and perfume.
However, when TikToker Hajra (@itshellohajra) opened her box of Glossier goodies, she was shocked to discover that the Glossier Cloud Paint blush only has 0.13 fl oz of product. In the background was the viral audio: “I hope you’re hungry…for nothing.”
Evidently, there seems to be a growing frustration over Sephora’s freebies—the question is, will they listen?
Charlotte is an internet culture writer with bylines in Insider, VICE, Glamour, The Independent, and more. She holds a Master’s degree in Magazine Journalism from City St George’s, University of London.
Give the gift of great skin this holiday season with these skincare gifts, perfect for just about anyone!
The Philips Epilator Series 8000 Wet & Dry boasts powerful yet gentle epilation with its improved tweezers and over 70,000 hair-catching actions per minute. This means you can cover more skin and achieve flawless smoothness for up to 4 weeks.
This holiday season, Bubble makes gifting simple, fun, and affordable with its limited-edition “Silky Season” 3-Step Hydrating Routine. The set includes three of Bubble’s best-selling essentials for clean, hydrated, and glowing skin.
Clé de Peau Beauté invites you aboard the Dreams Express, a limited-edition collection that transforms beauty into an exquisite journey of imagination and light. Inspired by a fantastical dream world, the Dreams Express Collection celebrates confidence, transformation, and the radiance that comes from within.
Biossance’s Bright Bestsellers Set is for the radiance-obsessed, with a set that brings together Biossance’s most-loved icons: the Squalane + Vitamin C Rose Oil for instant luminosity, the Squalane + Copper Peptide Rapid Plumping Serum for bouncy, hydrated skin, and the Squalane + Omega Repair Cream for rich, replenishing moisture. It’s a routine that brightens, firms, and deeply nourishes.
Josie Maran bite-sized butters are air-whipped, full-body moisturizers that soak in to deliver visible firmness and intense hydration. Tuck them into someone’s stocking, or wrap them up as a set.
Peter Thomas Roth’s full-size Vitamin C and hyaluronic eye patches come in a two-piece kit that’s ideal for gift giving. The Potent-C Hydra-Gel Eye Patches help brighten and reduce signs of aging, and Water Drench Hydra-Gel Eye Patches help reduce the look of dryness, under-eye bags, and dark circles.
The Ultimate Hydration Jet Set from Skinfix is the travel skin repair trio. The gel cleanser doubles as a makeup remover, clearing oil and SPF without stripping, a fast-absorbing water cream delivers lightweight moisture and reduces shine, and a rich cream is packed with peptides to restore ultra-dry skin.
Summer Fridays’ The Holiday Trio Set comes with Lip Butter Balm in Hot Cocoa and Toasted Marshmallow. Nourish dull, depleted skin with a swipe of buttery hydration.
The NYX Professional Makeup Holiday Fat Oil Trio Lip Oil Gift Set is formulated with squalane, cloudberry, and raspberry oils. They work together to deeply nourish and hydrate the lips, promoting a supple, healthy appearance.
AS Watson was established in 1841 in Hong Kong, the year the British took over the territory. Almost 185 years later, the brand is now a health and beauty retail giant, with close to 17,000 outlets across 31 markets, including mainland China, Malaysia, the UK, Turkey and even Ukraine.
“We are a people company,” Malina Ngai, group CEO of AS Watson, said at the Fortune Innovation Forum in Kuala Lumpur, Malaysia, on Monday. Ngai acknowleged the company’s long history–including how the company endowed Sun Yat-sen, who later led the 1911 revolution agaisnt the Qing dynasty, with a medical scolarship–yet argued that AS Watson had to remain forward-thinking.
“Heritage gives us credibility, so people trust us, but only if we stay relevant [will we] be able to stay alive,” Ngai said.
The secret sauce to successfully operating in so many markets, Ngai argued, came from understanding their customers. In Southeast Asia—which Ngai described as one of AS Watson’s “growth engines”— consumers are young, digitally-savvy and conscious about health and beauty. They also love new campaigns and product launches. As such, Watsons, AS Watson’s main drugstore brand, has rolled out campaigns such as “Kaw Kaw Deals” in Malaysia, replete with a catchy jingle of the same name by local personalities Jinnyboy and Ayda Jebat.
Through market surveys, Ngai also found that many young customers in the region enjoy shopping at brick-and-mortar stores, despite a variety of online shopping options. “For younger customers, they want to be in the store, they want to get consultancy, they want to be able to touch the product—and this is what we can offer,” she said.
Aside from popular J-beauty and K-beauty products, Watsons also offers an array of halal-certified skincare and beauty items for Muslim consumers in markets like Malaysia and Indonesia.
C-beauty has also seen a spike in popularity among Southeast Asian consumers. Chinese beauty brands are “strong in technology and social media, and they get engagement and popularity within Southeast Asia very quickly,” Ngai explained.
‘People-first’
Ngai emphasized the importance of empowering employees. “In the company, if everyone is a leader, it will be a very powerful company. This means they know exactly the [company’s] purpose, they know how to collaborate, and they care for each other,” Ngai said.
Still, AS Watson is moving to adopt new technologies across its team, including launching a company-wide generative AI protocol in September. “AI used to be just with my data team, the programmers—but now Gen AI is for everyone,” Ngai said.
As the company approaches its 185-year milestone in 2026, Ngai shared her hopes for AS Watson’s future. “I don’t normally dream about work over the years. I sleep quite well, but recently, I dream a lot about 185 years,” Ngai said. “[I want AS Watson to] be an organization that can stay fit for the future, the next 180 years.”
An Instagram ad catches your eye. You click to the product’s website and find reassurance: The product, it says, is “FDA certified” or was “produced in an FDA registered facility.”
Mention of the U.S. Food and Drug Administration — the agency that regulates drugs, biological products, medical devices, food and cosmetics — might give it the veneer of legitimacy. But not all claims about FDA approval, certification or registration are created equal.
The FDA warns that some companies advertise products using fake FDA registration certificates.
It can be hard to navigate.
“Consumers should be aware that many terms and claims may be misleading and have little, if any, relevance regarding the safety or effectiveness of the product,” said Aaron Lottes, a Purdue University engineering professor with medical device regulation expertise.
Here’s a consumer guide to the FDA’s regulatory terms — and other terms you might encounter that don’t really come from the agency at all.
‘FDA approved’
It means: The FDA determined the product is safe and effective for its intended use. For drugs, it means the drug’s benefits outweigh its known and potential risks when used for its intended purpose and following its approved labeling.
The FDA evaluates lab, animal and clinical testing outcomes and other scientific information to assess whether a product is safe and effective and whether it can be made according to federal quality standards.
Things the FDA approves include:
Drugs or products meant to treat or prevent disease.
Biological products such as gene therapies, therapeutic proteins, vaccines, allergenic products and products made from plasma.
High-risk human medical devices, including mechanical heart valves and implantable infusion pumps.
Human food additives that are added to food for a specific purpose, such as when xanthan gum is added to a food to add texture.
Color additives used in food, dietary supplements, drugs, cosmetics and some medical devices.
The FDA generally does not approvecosmetics such as moisturizers, perfumes, makeup, shampoos, toothpastes and deodorants; infant formula; dietary supplements; food labels or nutrition facts; facilities such as doctors’ offices or labs; or tobacco products. It also does not approve compounded drugs, which a pharmacist or doctor might create to meet the needs of patients with allergies. Another example would include the creation of a compounded liquid formulation of a medication commonly available as a pill for someone with a condition that makes swallowing difficult.
Some things fall in between. A product might be both a cosmetic and a drug if it has more than one use and one of its uses would contribute to a disease’s diagnosis, cure, mitigation, treatment or prevention.
“An antidandruff shampoo is a cosmetic because its intended use is to cleanse the hair, and it is also a drug because its intended use is to treat dandruff,” the FDA said in a statement.
Another example would be antiperspirant deodorant or makeup containing sun protection, the statement said.
It means: The only type of official FDA certification we found applies to a mammography facility that meets strict standards for providing quality mammograms, X-ray pictures of breasts to help with earlier breast cancer detection.
Federal law requires mammography facilities be certified as capable of providing quality mammograms by either the FDA or FDA-approved certification agencies in Illinois, Iowa, South Carolina or Texas. A facility must stop providing mammograms if it is not certified.
The FDA generally does not certify medical devices or facilities that make them.
Renee Jeria, the imaging manager, shows the working of the mammography screening machine at the Samuel U. Rodgers Health Center on April 25, 2023 in Kansas City, Mo. (AP)
How to verify if your mammogram facility is certified: Search the FDA’s certified mammography facilities list or, when you’re there, look for a displayed FDA certificate.
Watch out for: Companies using fake certificates to claim a product or medical device is FDA certified — a practice the FDA said increased during the COVID-19 pandemic. These fake certificates often mimic official government documents and display the FDA logo.
‘FDA registered’
It means: The FDA has registration paperwork on file from the owners of a domestic or foreign food, drug or medical device facility that produces and distributes products sold in the U.S.
A facility’s registration with the FDA does not mean the agency approved, cleared or authorized it or the products it creates or distributes. The FDA doesn’t approve facilities, but it can inspect them to verify that they comply with relevant good manufacturing practices and other requirements.
One of the most popular ways to get your nails done is now banned in parts of Europe. And an expert says that should give everyone pause. “I was counseling patients or trying to steer them in other directions or alternatives,” said Dr. Farah Moustafa, a dermatologist and the director of Laser and Cosmetics at Tufts Medical Center in Boston, Massachusetts.That included Yara, who has been getting gel manicures regularly for about a decade. “I get them done every two or three weeks,” she said. “It makes my nails look very shiny and hardens them. It also lasts longer.”But when she noticed her nails getting really weak, she turned to Moustafa for advice.”She recommended that I stop getting gel nail polish done,” Yara said. Moustafa said she’s been worried about gel manicures for years, before the European Union banned the polish because of a chemical that may raise concerns about fertility. “The ban was based on some animal studies in which rats were fed large quantities of TPO and they were found to have fertility issues, and it was reproductively toxic,” Moustafa said. TPO stands for trimenthylbenzoyl diphenylphoshine oxide — a long name for a chemical agent that allows the nail polish to harden when exposed to UV light. That’s long been the appeal of gel polish: the shiny seal that makes the color last for weeks instead of days. There have been no scientific studies that definitively establish a link between TPO and health risks in humans. And a ban in the United States is seen as unlikely. Moustafa said, the chemical aside, the UV exposure has always worried her when it comes to gel. “The UV exposure is not good for your hands long-term and does increase your risk of skin cancer of the nail bed,” she said. “It’s like a tanning bed for your nails.”Moustafa suggests patients look at the labels before picking their polish or consider alternatives like dip powder or dazzle dry. For Yara, it was enough to make her hit pause, even though she admits she loves gel polish.”I’m going to try my best to stick with it,” she said. “I’ll probably do it occasionally when I have a wedding or something. But for now, day to day, I think I’m going to stick to regular nail polish.”
BOSTON —
One of the most popular ways to get your nails done is now banned in parts of Europe. And an expert says that should give everyone pause.
“I was counseling patients or trying to steer them in other directions or alternatives,” said Dr. Farah Moustafa, a dermatologist and the director of Laser and Cosmetics at Tufts Medical Center in Boston, Massachusetts.
That included Yara, who has been getting gel manicures regularly for about a decade.
“I get them done every two or three weeks,” she said. “It makes my nails look very shiny and hardens them. It also lasts longer.”
But when she noticed her nails getting really weak, she turned to Moustafa for advice.
“She recommended that I stop getting gel nail polish done,” Yara said.
Moustafa said she’s been worried about gel manicures for years, before the European Union banned the polish because of a chemical that may raise concerns about fertility.
“The ban was based on some animal studies in which rats were fed large quantities of TPO and they were found to have fertility issues, and it was reproductively toxic,” Moustafa said.
TPO stands for trimenthylbenzoyl diphenylphoshine oxide — a long name for a chemical agent that allows the nail polish to harden when exposed to UV light. That’s long been the appeal of gel polish: the shiny seal that makes the color last for weeks instead of days.
There have been no scientific studies that definitively establish a link between TPO and health risks in humans. And a ban in the United States is seen as unlikely.
Moustafa said, the chemical aside, the UV exposure has always worried her when it comes to gel.
“The UV exposure is not good for your hands long-term and does increase your risk of skin cancer of the nail bed,” she said. “It’s like a tanning bed for your nails.”
Moustafa suggests patients look at the labels before picking their polish or consider alternatives like dip powder or dazzle dry.
For Yara, it was enough to make her hit pause, even though she admits she loves gel polish.
“I’m going to try my best to stick with it,” she said. “I’ll probably do it occasionally when I have a wedding or something. But for now, day to day, I think I’m going to stick to regular nail polish.”
Father’s Day is coming up and it’s a time to show love and appreciation to those special dads in our lives. Here are some great gift ideas.
Hugo Boss BOSS Bottled Bold Citrus cologne is a new limited edition scent every dad will love. With an explosion of powerful citrus notes, this fragrance is daring, invigorating, and fresh. It’s crafted by principal perfumer Sophie Labbé and master perfumer Honorine Blanc.
The new Nintendo Switch is out and it’s gotta a slew of new awesome features: larger display with vibrant colours and exceptional clarity, powerful new processing speeds, and Joy-Con 2 controllers that magnetically snap into place and can be used as a mouse in compatible games. This is the next step in handheld gaming, and dad is gonna love it!
Carolina Herrera’s Bad Boy Elixir Eau de Parfum with Woody Leather and Jean Paul Gaultier’s Le Male Le Parfum with Lavender & Iris are two classic scents that are perfect for all kinds of fathers, whether he likes colognes that are sporty, natural, classic, or edgy. These two have got it all.
Give dad the gift of ultimate comfort with Manmade’s Father’s Day Bundle. It includes three of their bestselling black boxer briefs, cloud-like socks (one in black and one in white), and a summer ready cap, all in their signature box set. It’s head to toe comfort every dad deserves.
Dad Jokes: The Funniest Yet is a new collection of fantastically funny jokes from the Instagram sensation and Sunday Times bestsellers @DadSaysJokes!
Q: How can you tell a pig is hot?
A: It’s bacon.
The iconic Instagram page @DadSaysJokes returns with a fresh batch of dad jokes to share with your nearest and dearest. Packed with jokes so bad that they’re good, Dad Jokes: The Funniest Yet is the perfect gift for every occasion.
The Hybrid BBQ Grill Pan from HexClad will be dad’s new BFF at the grill. It has perfectly-sized perforations to ensure delicate ingredients like vegetables and seafood get that mouth-watering smoke and char flavour without risking anything to the grate. High, curved sides let you stir, flip, and arrange with ease, and its footprint is large enough to serve the whole family, but small enough to leave plenty of room on the grill for the rest of your meal.
The Uniqlo Dry Pique Striped Polo Short is the quintessential summer shirt of dressy casual style. It has a moderately roomy silhouette and classic striped pattern, and it’s super soft and comfortable.
Get your game on and challenge dad to a round of Scrabble with this Deluxe Edition from Crate & Barrel. Everyone’s favorite word game goes deluxe with this exclusive update that includes raised tile grooves and a natural wood cabinet with a built-in lazy Susan. Matching wood end caps on the timer and wood tile holders complete the custom look. Even the tiles are updated, with white letters on black wood.
Mejuri’s Black Onyx Pendant Necklace is handcrafted from precious materials and makes a bold impact. Classy and understated, it comes in yellow gold or sterling silver.
If your dad is a coffee lover, he’ll appreciate the sophistication of Nespresso’s Loop Espresso Cups. This set of two cups have sleek lines and subtle tones to effortlessly complement your coffee and lifestyle.
Another great scent to spoil dad with is YSL Myslf Le Parfum, a new intense woody floral statement. It has light florality and notes of velvety woods, and is enhanced by subtle vanilla. It’ll be your dad’s new go-to scent.
“New perfume for the handkerchief” was advertised on Page 4 on this day in 1865. Available at Phalon & Sons druggist, Night Blooming Cereus promised to be the “most exquisite, delicate, and fragrant perfume.”
L’actone Cosmetics Unveils Strategic Vision for Global Dominance in Beauty Industry
NEW YORK, April 17, 2024 (Newswire.com)
– L’actone Cosmetics, under the dynamic leadership of CEO Ali Osman Akat, is poised to redefine the beauty industry landscape with a bold strategic vision aimed at unprecedented global growth, including expansion into Canada.
Akat’s strategic prowess has propelled L’actone into a new era of expansion, marked by strategic partnerships and collaborations meticulously crafted to position the brand as a dominant force in diverse global markets, including Canada. These partnerships, yet to be disclosed, are poised to play a pivotal role in L’actone’s strategic initiatives for market penetration and brand visibility in the Canadian beauty industry.
In tandem with its partnership strategy, L’actone is investing heavily in immersive experiences designed to captivate and engage Canadian consumers on a deeper level. These experiential exhibitions transcend traditional retail environments, offering Canadians an opportunity to connect with L’actone’s brand ethos of beauty, innovation, and self-expression, fostering deeper connections and solidifying brand loyalty.
Central to L’actone’s growth strategy in Canada is its unwavering commitment to consumer-centric innovation. By staying attuned to evolving industry trends and Canadian consumer preferences, L’actone continues to introduce cutting-edge products and services tailored to meet the diverse needs of Canadian customers.
Ali Osman Akat’s visionary leadership has been instrumental in driving L’actone’s strategic vision for global dominance, including expansion into the Canadian market. Backed by a dedicated team of professionals and a culture of excellence, Akat is confident that L’actone will continue to thrive in Canada’s dynamic beauty industry landscape.
As L’actone expands its presence in Canada, the brand remains steadfast in its mission to empower Canadian individuals to embrace their unique beauty with confidence. Through its diverse range of products, immersive experiences, and inclusive messaging, L’actone champions diversity, authenticity, and self-expression, shaping the future of beauty in Canada and beyond.
About L’actone Cosmetics:
L’actone Cosmetics is a leading beauty brand dedicated to empowering individuals to embrace their unique beauty with confidence. With a commitment to innovation, quality, and inclusivity, L’actone offers a wide range of skincare, makeup, and fragrance products designed to inspire self-expression and celebrate individuality.
Costa Rica is riding a green wave, and no, it’s not just the lush rainforests. The country’s CBD market is booming, with an impressive 333 products now registered. This isn’t just a fad; it’s a full-blown lifestyle revolution, encompassing everything from munchies to magic potions.
2. A Feast of Choices: CBD-Infused Edibles
In Costa Rica, CBD isn’t just a health supplement; it’s a culinary delight. With 257 food products registered, the options are as varied as the country’s biodiversity. Imagine sipping on CBD-infused drinks, nibbling on chocolates, gorging on gummies, or spreading CBD peanut butter on your morning toast. From coffees to brownies, the CBD-infused menu is as enticing as it is vast.
3. CBD Cosmetics: Beauty with Benefits
Move over, traditional skincare! Costa Rica’s CBD cosmetic range is redefining beauty regimes. Imagine slathering your skin with CBD gels, creams, serums, and even lipsticks. These aren’t just vanity products; they’re packed with moisturizing, antioxidant, antimicrobial, and anti-inflammatory properties. It’s beauty that heals.
4. Cutting-Edge Wellness: Nano Aqua’s CBD Water
Innovation is the name of the game in Costa Rica’s CBD market. Take Nano Aqua’s CBD-infused water, for instance. This isn’t your average flavored water; it’s a technological marvel, enhanced with nanotechnology for superior absorption. Brewed in the heart of…
Since Macklemore sang about the Thrift Shop, people really embraced thrift. Buying used things can conjure up a feeling of euphoria. You get to spend a portion of the retail price for an item you deem valuable. in the new era of sustainable fashion, you can find unique pieces, which may be a little worn, but stand out. The adventure of the hunt plays into the adventure. But are second hand cosmetics safe to use?
While the idea of selling your old makeup may sound like a great way to earn some extra cash, it’s not the safest of practices — at least for buyers. Still, popular websites like Mercari, have their own section of second hand makeup gives these purchases a sense of legitimacy and security, even though in reality, they could give you an eye infection.
While some sites like eBay don’t sell used makeup products because of the health risks they pose, Glambot claims to check and clean all of their used products thoroughly, having each go through a five-step authentication and sanitation process. This is just a long way of saying that they wiped the products clean with some cotton swabs.
“Used cosmetics present some serious health and safety concerns because the products and applicators used to apply them often come into direct contact with the body,” explains eBay‘s makeup policy.
Photo by Joanna Malinowska via freestocks.org
Dermatologists who had different opinions on the matter, yet most agreed users should be wary of all second hand make up, especially those products focusing on areas near the mouth and the eyes.
“Used makeup can contain fungus or bacteria can cause infections. This is especially an issue for makeup which comes in direct contact with the skin like applicators touching the skin, or anything you dip your finger into (like an open jar),” explains Jordana Mattioli, celebrity esthetician.
Most experts also took the time to explain makeup is generally applied in bathrooms, making it easier for these products to catch bacteria or viruses, which can survive and live in the product for long periods of time. While you might get lucky when you use a sample lipstick from a Sephora store, it’s much more likely to catch a virus or a staph infection from someone’s beloved (and well-worn) make up.
In short: don’t do it. A used mascara tube is not the same thing as a used jacket.
Family Dollar voluntarily recalled dozens of over-the-counter drugs, products and medical devices sold at its stores because they had been stored at improper temperatures, according to the Food and Drug Administration late Tuesday.
On the FDA’s website, the regulator said products affected by the recall were stored “outside of labeled temperature requirements by Family Dollar and inadvertently shipped to certain stores on or around June 1, 2023 through September 21, 2023.”
The items were sold at stores in Alabama, Arkansas, Arizona, California, Colorado, Florida, Georgia, Idaho, Kansas, Louisiana, Mississippi, Montana, North Dakota, Nebraska, New Mexico, Nevada, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington and Wyoming, between June 1 and Oct. 4, the FDA said.
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Summary
Summary
U.S
Europe
Asia
FX
Rates
Futures
ETFs
Crypto
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
on Wednesday issued new financial guidance after spinning out the consumer-health company
Kenvue
While its earnings and sales projections were lowered on an absolute basis, the company is maintaining its dividend and expects to increase its revenue at a faster pace.
that expired last Friday was substantially oversubscribed. The result is that participating J&J holders will be able to convert only a fraction of their shares for Kenvue stock.
The majority of second-quarter earnings season is over, with a handful of major technology and retail names left to report this week. Economists will be focused on any news from an annual gathering of monetary policy thinkers and practitioners in Jackson Hole, Wyoming.
is likely to generate strong interest from the healthcare company’s shareholders, resulting in participants being able to swap only a portion of their J&J stock.
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
IPO investors, much like retail shoppers in recent years’ inflationary environment, are demanding clear discounts and demonstrating sensitivity to price and valuations, according to Renaissance Capital.
The provider of IPO exchange-traded funds and institutional research said that’s a positive — even if tech unicorns in the pipeline would prefer it were not the case.
“Quality consumer names are working,” said Matthew Kennedy, senior strategist at Renaissance, listing Kenvue, Cava Group Inc., Gen Restaurant Group Inc. and Savers Value Village Inc. as examples of recent new issues that enjoyed strong debuts.
Kenvue KVUE, +1.65%,
the former consumer arm of Johnson & Johnson JNJ, +0.87%
and parent of household-name products such as Tylenol and Band-Aid, raised $3.8 billion in its May IPO at a valuation of $41.08 billion, making it the biggest deal of the year to date.
Cava Group CAVA, -5.93%,
the loss-making Mediterranean-style fast-casual restaurant group, raised $317 million in its mid-June deal at a valuation of $2.5 billion. The stock popped more than 99% on its first day of trade.
“But broadly investors are still demanding clear discounts to public peers, especially if they take issue with certain aspects of a deal. So it’s good to see that valuation sensitivity,” said Kennedy.
Savers Value Village SVV, +3.45%
went public Thursday with some fanfare, closing 27% above its $18 issue price. The company is the biggest for-profit thrift-store chain in North America, with 317 stores that operate under multiple names.
The company is profitable, with net income of $11.9 million in the quarter through April 2, after a loss of $10.2 million in the same period a year earlier. For all of 2022, it had net income of $84.7 million, up from $83.4 million in 2021.
Revenue for the quarter came to $327.5 million, down from $345.7 million in the year-ago period. Revenue totaled $1.4 billion for 2022, up from $1.2 billion in 2021.
Two other deals that made their debut on Thursday fared less well, however.
Texas-based Kodiak Gas Services Inc. KGS, +3.44%
and Fidelis Insurance Holdings Ltd. closed lower after pricing below their estimated ranges and making other accommodations to get their deals through.
Bermuda-based Fidelis, a reinsurer, downsized its deal to 15 million shares from a previous expectation that it would offer 17 million. The initial public offering was priced at $14 a share, below the proposed $16-to-$19 range.
Maker of oil- and gas-production equipment Kodiak opened almost 3% below its issue price of $16, which was well below its proposed price range of $19 to $22.
Fidelis has an unusual structure, in that it uses a third party for origination, underwriting and claims management, said Kennedy.
“We think insurance investors wanted a discount for a company that didn’t own the underwriting group,” he said. “It has an experienced management team, though, so now they’ll just need to execute.”
Kodiak, meanwhile, carries substantial debt and will need to undertake significant capital spendig in the coming years, just as gas prices have fallen back.
It’s also worth noting that the last big oil and gas IPO, Atlas, “is slightly below its offer price,” Kennedy said.
Still, Renaissance is expecting a gradual reopening of the IPO market in the second half, said Kennedy, who noted that the IPO ETF IPO, +1.38%
has gained about 30% in to date in 2023, outperforming the S&P 500’s SPX, +1.23%
14% gain.
To date, there have been 52 IPOs this year, up 33% from the same time last year, when the market was effectively frozen. Almost $9 billion in proceeds have been raised, up 115% from last year but well below levels seen in frothier times.
The Israel-based company plans to trade on the Nasdaq using the ticker ODD. The company didn’t immediately disclose how the offering would be priced in regulatory filings and declined comment when asked when the numbers would be released.
“The number of shares to be offered and the price range for the proposed offering have not yet been determined. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering,” Oddity said in a press release.
Launched in 2018 by brother and sister duo Oran Holtzman and Shiran Holtzman-Erel, Oddity uses data and AI to develop brands and make tailored product recommendations for customers.
The business is seeking to disrupt a market long dominated by legacy retailers by replacing the in-store experience with product recommendations driven by AI and data. At the heart of its business model is its proprietary technology — including tech developed by a former Israeli defense official — and the billions of data points it has collected from its millions of users.
In the three months that ended March 31, the company saw $165.65 million in revenue, up from $90.41 million in the year-ago period.It reported a net income of $19.59 million, or $5.34 a share, compared with $3.01 million, or 82 cents a share, a year earlier.
Numbers revealed in its regulatory filing show the direct-to-consumer retailer has been profitable on an annual basis since at least 2020.
In fiscal 2022, Oddity brought in $324.52 million in sales and saw a net income of $21.73 million, or $5.94 a share. In the year prior, the retailer saw $222.56 million in revenue and a net income of $13.92 million, or $4.01 a share.
In 2020, it saw $110.64 million in sales and a net income of $11.71 million, or $3.45 a share.
By comparison, when E.L.F. Beauty filed to go public in August 2016, its profits and sales were lower than Oddity’s. E.L.F., a multibrand beauty company, saw $144.94 million in sales in fiscal 2014 and a net loss of $2.88 million. The following year, it saw $191.41 million in sales and a net income of $4.36 million.
In fiscal 2016, it brought in $229.57 million in sales and a net income of $5.31 million.
Since going public, E.L.F.’s sales and profits have climbed. During its most recent fiscal year, which ended March 31, it saw $578.84 million in sales and a net income of $61.53 million.
As a direct-to-consumer retailer, Oddity is seeing the high margins that come along with the strategy.In the three months that ended March 31, its gross margins were 71%, up 4 percentage points from 67% in the year-ago period. Its annual margins have slipped each year since 2020 as the company has made acquisitions and invested in growing the business.
In 2020, Oddity had an annual gross margin of 70%, and in 2021, it dropped 1 percentage point to 69%. In 2022, the retailer’s annual gross margin was 67%, down 2 percentage points from the year-ago period.
As of March 31, the company had more than 4 million active customers, which it defines as a unique customer account that made at least one purchase in the preceding 12-month period.
“We bring visitors to our website, turn visitors into users by asking questions and learning about them, and then leverage the data we have across the platform to convert them into paying customers,” a regulatory filing says.
Oddity has launched internationally, and sales from those markets accounted for about 26% and 27% of its net revenue in fiscal 2022 and 2021, respectively. As of Friday, Oddity has launched in the U.S., Canada, U.K., continental Europe and Australia. It noted it has plans to keep growing that footprint.
The company plans to use proceeds from the IPO to develop and launch new brands. It will also use the funds for working capital, other general corporate purposes and potentially for acquisitions and other investments.
During an interview earlier this year, the company’s global chief financial officer, Lindsay Drucker Mann, a former Goldman Sachs executive, told CNBC that Oddity is making money and growing — even against a tough macroeconomic environment that has proven increasingly risky for purely digital retailers.
On average, Oddity’s gross sales have doubled each year since 2018, the company has said.
In Spoiled Child’s first year on the market, the new brand brought in $48 million in gross sales, which does not include returns.
In a regulatory filing, Holtzman, the company’s CEO and co-founder, said the company recruits from the Israeli Defense Forces’ best technology units. Technologists comprise over 40% of its global head count.
“As industry outsiders, we saw many shortcomings in the status quo approach. The empires that incumbents had built over decades had not evolved with the times, resulting in a significant lag in online adoption,” Holtzman wrote in a founder’s letter enclosed in a securities filing.
“Their underinvestment in technology left the category behind the digital curve, despite a consumer who is inherently primed to buy online — spending significant time on social media for beauty content and rapidly shifting dollars online in other categories.”
Beyond developing new products and brands, Oddity is also trying to make beauty products more effective, the company has said.
In late April, it announced it was investing more than $100 million to acquire biotech startup Revela and open a U.S.-based lab.
The merger brought to Oddity a team of scientists tasked with creating brand-new molecules, using artificial intelligence, that can be used in its cosmetics brands and future lines.
In 2021, Oddity acquired Voyage81, a deep tech AI-based computational imaging startup founded in 2019 by Niv Price, the former head of research and development for one of the Israeli Defense Forces’ elite technological units, along with Dr. Boaz Arad, Dr. Rafi Gidron and Omer Shwartz.
The technology is capable of mapping and analyzing skin and hair features, detecting facial blood flows, and creating melanin and hemoglobin maps using a regular smartphone camera.
The filing comes after a year and a half of a drought in the initial public offering market, which is just beginning to open up and show signs of green shoots.
Earlier this month, Mediterranean restaurant chain Cava went public, and its shares soared as much as 117% in its market debut.
“[In 2022] investors didn’t want to go anywhere near IPOs but now that they’re making money again, and with issuers seeing that they can achieve close to decent valuations, I think that’s bringing the people back into the market,” said Matt Kennedy, a senior IPO market strategist for Renaissance Capital.
“The consumer sector does lend itself to these periods where investors can see a business model that they understand, a business that they might be familiar with and also one that is typically profitable or near profitable, preferably that has growth.”
