Manscaped inks distribution deal with Walgreens
Manscaped, a DTC men's grooming brand, is now selling its products in more than 5,200 Walgreens' locations across the U.S., says CEO Paul Tran.
Why it matters: It's likely the company's largest distribution deal tied to physical retail to date — adding an important new growth channel as it gears up to go public via a merger with SPAC Bright Lights Acquisition Corp. later this year.
Catch up fast: Despite market volatility, Manscaped — which makes shaving tools and personal care products — is forging ahead with its public debut, Tran tells Axios.
- "There is a lot of noise out there," he acknowledges. "Consumer confidence is a little bit shaky because of high inflation and other macro factors," he points out, noting the war in Ukraine and supply chain issues.
- Even so, "great companies focus on being great companies and they focus on the business, and you try as hard as you can not to let the market dictate your decisions," he says.
Yes, but: DTC brands that went public via a SPAC last year — like Bark, the parent of BarkBox, and Hims & Hers — are now trading at a discount due to net losses and uncertainty around the future of those businesses.
- Nevertheless, Tran says he's focused on the long-term vision and growth strategy of his own company.
State of play: With the Walgreens deal, Manscaped's move into pharmacy makes the company's products more accessible, and in stores that customers frequent more often.
- Prior to Walgreens, the Manscaped brand was available in Target, Macy's and Best Buy stores, as well as military exchanges.
- Having a presence in well-known physical retailers also has a halo marketing effect.
Of note: The expansion into Walgreens follows Manscaped's recently announced four-year deal with comedian Pete Davidson as its brand spokesperson.
- Tran noted that Manscaped's sales a day later on Amazon Prime Day spiked 320% year-over-year.
By the numbers: Net sales for Manscaped for the fiscal year ended Dec. 31 grew about 41% to $297 million, it reported in April.
- Gross profit was nearly $144 million, while its net loss was almost $316 million and its adjusted EBITDA was $5.2 million.
- Tran declined to comment on the company's current financials or growth trajectory.