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Retail

Warpaint London continues to enjoy strong trading, eyes EU expansion

Make-up sales for the first quarter are ahead of last year

Warpaint London PLC (LON:W7L) jumped on Tuesday after strong trading seen in the second half of 2020 continued into the first quarter of 2021.

Sales for the period are ahead of last year, when Coronavirus (COVID-19) lockdowns hit the last few weeks only.

It has also boosted online sales in the UK and US through Amazon and is now eyeing an expansion in the EU “in the near future”.

Product gross margin has also improved in the first quarter of 2021 versus the same period in 2020, the makeup company said.

Sales of the group's W7 branded products in UK Tesco stores continue to perform well, with the grocer stocking an additional 15 W7 product lines in over 600 sites from the end of May, while it has already placed a “substantial” Christmas order for later this year.

The AIM-listed company has also restructured US activities and W7 products are now being stocked in over 1,000 Five Below stores.

Net cash at the end of March was £5.2mln, versus £3mln a year ago.

Shares surged 15% to 124p on Tuesday morning.

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