US tariffs dent Warpaint, shares fall
By Abigail Townsend
Date: Tuesday 17 Jun 2025
(Sharecast News) - Shares in cosmetics and beauty firm Warpaint London came under pressure on Tuesday, after tariffs dented second-quarter sales.
The group, which owns W7, Technic and Dirty Works, among other brands, said it had traded "robustly" in the six months to 30 June, with interim sales set to come in between £50m and £52m, up from the £45.9m posted a year previously.
That includes a £5m contribution from Brand Architekts, the smaller rival Warpaint acquired earlier this year in a £13.9m deal.
However, Warpaint also acknowledged that second-quarter revenues had been impacted by a slowdown in its US business, following the imposition of higher tariffs.
The firm noted that the US division remained a "modest" part of the business, contributing 8.5% of 2024 sales.
But that did not stop the shares falling sharply in morning trading, and by 1000 BST the AIM-listed stock had shed 8% at 410p.
Clive Garston, chair, said: "Even more so than previous years, the group expects sales for the full year to be heavily second half weighted. This is due to the large number of planned product roll outs to additional stores in the second half, along with a significant Christmas order book.
"There continues to be substantial growth opportunities for Warpaint and the group is very well positioned to achieve further growth."
"The board remains confident that the group will meet market expectations for the year to 31 December."
Russ Mould, investment director at AJ Bell, said: "The lipstick effect - the idea that people will still splash out on small indulgences like their favourite make-up in tough times - has not been much in evidence for Warpaint in 2025.
"The company has been buffeted by tariff headwinds and broader consumer uncertainty.
"The market [has] seized on weak like-for-like sales in its second quarter, as the US business has suffered thanks to the introduction of tariffs."
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