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Corporate Partner Eric Perlmutter-Gumbiner shared commentary with Beauty Independent on what beauty founders should consider before publicly sharing financial milestones. He also addressed what retailers, investors, and potential buyers look for when evaluating a brand’s growth and value.

Excerpts:

There should be a business reason for doing it. A meaningful sales milestone can help a brand win retail distribution, recruit talent or get on the radar of investors and potential buyers.

But I would encourage a founder to think about who they are trying to reach and what they want that audience to take away. Once you put a number out there, you should expect to explain it and have people ask for an update. You want to be comfortable with both.

I start with what the number actually represents. A brand doing $100 million in retail sales is a different proposition from a brand generating $100 million in net revenue. Similarly, a sales forecast or an annualized run rate is different from a completed year of results. Those distinctions can get lost in a headline.

Read Eric’s full comments on beauty brand financial disclosures in Beauty Independent.