The skin care specialist is going ahead with plans to open more retail franchises despite posting a net loss of $CAD2.3m ($2.3) in its annual results for 2007.
As part of its plan to target affluent communities, Faces Cosmetics has opened a franchised store in Columbia, Maryland and construction is under way on another store in Fairfax, Virginia.
Both franchises will be located in up-market shopping malls from where the company hopes to spread awareness of the Faces brand.
Building the brand People from all over the US and the rest of the world flock to the Washington DC area year after year so developing a retail presence there may be an effective marketing strategy.
"These Faces franchised stores showcase the brand and service both domestic and international consumers," said Faces Cosmetics' CEO Ramesh Jolly.
Plans for emerging markets Faces Cosmetics also plans to expand beyond Canada and the US and move deeper into emerging markets.
Three additional Faces concessions are planned in Mexico, where the company already has an established network of retail franchises.
It also intends to establish a significant presence in the Middle East and India.
As well as expanding into new markets Faces Cosmetics will continue to pursue growth through product launches.
In the coming year the company plans to release a water resistant mineral powder line with SPF 25, a glitter eyeliner, an intensive therapeutic foot cream, and a skin foundation line.
In its full year financial results, released last month, net sales increased 10.6 percent to $CAD4.4m for the year ending July 31, 2007 but high administrative costs led to an operating loss of $CAD2.3m. Faces Cosmetics said the causes of the heavy losses included restructuring costs, written off stock and the raising of pre-IPO funds and that many of these items were non-recurring and exceptional.
It insists that despite initial losses its business model remains sound and will prove successful in the medium term.