Case Study: LUSH Cosmetics achieves smarter demand forecasting and $500K seasonal savings with Prophix Software

A Bright & Bubbly Forecast for LUSH Cosmetics

LUSH Cosmetics, a global handmade cosmetics retailer, faced inefficient demand forecasting and manual store purchase orders that led to last-minute air shipments, excess post-season markdowns and stockouts—especially during peak periods like Christmas. Store managers relied on bi-weekly historical sales reviews and hand-filled POs, which hindered inventory optimization and customer service.

By implementing Prophix’s CPM solution (integrated with Microsoft Dynamics AX), LUSH automated demand planning and store POs, moving from “ordering scared” to “ordering smart.” The change reduced COGS, minimized leftover stock and increased profit margins, delivering a $500,000 holiday-season savings, ~15% average store revenue growth year-over-year, more than 7 fewer days on hand, 90% end-user adoption and ROI within seven weeks, while improving customer satisfaction and lowering the company’s carbon footprint.

Lush Cosmetics