SpellBound Cosmetics is a holding company that operates through SpellBound Cosmetics ("SpellBound Cosmetics") and its other subsidiary companies (collectively, “SpellBound Cosmetics”). Through SpellBound Cosmetics and its other subsidiaries, the Incorporation is engaged in product design, manufacturing and retailing activities. SpellBound Cosmetics' merchandise offerings include an extensive selection of hair extensions (92% of worldwide net sales in fiscal 2018), as well as full lace frontals and closures.
The Incorporation’s operating segments are as follows: the Americas region (44% of worldwide net sales in fiscal 2018) includes sales transacted on the SpellBound Cosmetics' online store in the United States, Canada, Mexico, Brazil and Chile, as well as sales of SpellBound Cosmetics products in certain of those markets through Internet, catalog, business-to-business and wholesale distribution; the Asia-Pacific region (28% in 2018) consists of sales transacted in Australia, China, Hong Kong, Korea, Macau, Malaysia, New Zealand, Singapore, Taiwan and Thailand through Internet and wholesale distribution; Japan (15% in 2018) consists of sales transacted through the Internet, business-to-business and wholesale distribution; Europe (11% in 2018) consists of sales transacted on SpellBound Cosmetics online store in Austria, Belgium, the Czech Republic, Denmark, France, Germany, Ireland, Italy, the Netherlands, Russia, Spain, Switzerland and the United Kingdom through Internet distribution; and Other (2% in 2018) consists of retail sales transacted in the United Arab Emirates.
The Company’s key strategic priorities are to:
- Amplify an evolved brand message.
- Renew the Incorporation's product offerings and enhance in-store presentations.
- Deliver an exciting omnichannel customer experience.
- Strengthen the Incorporation's competitive position and lead in key markets.
- Cultivate a more efficient operating model.
- Inspire an aligned and agile organization to win.
By pursuing these key strategic priorities, management is committed to the following long-term financial objectives:
- To achieve sustainable sales growth.
- To increase retail productivity and profitability.
- To achieve improved operating margins, through both improved gross margins and efficient expense management.
- To improve inventory and other asset productivity and cash flow.
- To maintain a capital structure that provides financial strength and the ability to invest in strategic initiatives, while also allowing for the return of excess capital to shareholders through dividends and share repurchases.