Melissa Butler’s makeup brand is projected to bounce back from a trying time in Target stores.

The Lip Bar

Butler is the founder of The Lip Bar, which began in her Brooklyn, NY, kitchen when she was frustrated with the beauty industry’s mindset that one shade fits all, according to the company’s website. What began as a lipstick expanded into eye products, skin care, and more for women of various complexions.

The brand has grown to more than 2,000 stores since launching in 2011, including a flagship location in downtown Detroit and at Walmart, CVS, and Target, where it has its largest retail footprint with more than 1,000 locations. Its launch in Target was supported by $2 million in seed funding from Richelieu Dennis’ New Voices Fund in 2018, according to Beauty Independent. Four years later, The Lip Bar was strengthened with $6.7 million in a funding round led by Pendulum with participation from The Fearless Fund and Endeavor, increasing its presence on Target shelves by 700%.

However, The Lip Bar took a major hit at Target, which pulled back from its diversity, equity, and inclusion commitments in January 2025. The commitments included a program that supported Black entrepreneurs being shelved in stores. Target’s DEI stance also prompted an ongoing consumer boycott. In August 2025, it was announced Target CEO Brian Cornell would step down following a decline in sales. Chief Operating Officer Michael Fiddelke will succeed him, assuming the role on Feb. 1, 2026, as AFROTECH™ previously reported.

Butler said she expected Target to affirm that it would not change its stance on DEI but expressed disappointment that the company did not release a “redeeming” statement. However, Butler said her relationship with Target has not changed.

“That was disappointing, but my relationship with Target hasn’t changed. I have not seen them pull back on any of the commitments they have made for our company,” Butler told Beauty Independent.

The boycott impacted The Lip Bar’s performance at Target, with sales decreasing by 30% to 40%. Butler acknowledged that “it is very painful for a small business.” However, she projects the company’s sales overall to increase by 40%. This also follows the company nearly depleting its capital in 2023.

“Even before the Target DEI news came out, our strategy was to broaden our scope at a product level. A lot of people know us for lip, but don’t know that we sell tinted moisturizer, concealer or skincare. Our strategy was to increase visibility of our additional products and additional retailers and to diversify our audience. Luckily, that supported the shifts that our customers were inevitably going to make,” Butler told the outlet.

“So, even though Target is down 30%, 40%, The Lip Bar as a business will be up 40%, and we will be doubling our EBITDA this year, which is such a big win because two and a half years ago we were on the brink of running out of capital. We were on the brink of perhaps having to lay off some team members. We pivoted the strategy to lean into our core,” she continued.

The Lip Bar’s direct-to-consumer site has also been helpful, and the company is faring well on Amazon.

“Amazon has been crushing it, it’s No. 1 in beauty right now. We wanted to put more emphasis on Amazon while making sure that we continue to have that connection with our community by focusing on our dot-com, which is up 150% to last year,” Butler said, per Beauty Independent.