Under the guidance of chief executive Lauren Brindley, Revolution Beauty has been undergoing a makeover to leave behind a tumultuous few years,
Revolution Beauty, the struggling cosmetics brand, has issued a warning that its annual sales are likely to fall by approximately a quarter due to weak online trading in December and delays in retail launches.
The group, which sells make-up, skincare, hair and body products both online and through concessions, admitted experiencing “sales softness” during the crucial Christmas month across its digital platforms, as well as some “an element of de-stocking” by US retailers.
This situation was further exacerbated by the postponement of several retailer launches scheduled for its fourth quarter, which will now take place in the first half of its new financial year. The company’s shares plummeted by over a fifth as it warned that net sales are predicted to drop by around 25% for the year ending February 28, with underlying earnings in the “high single-digit millions”, bolstered by cost-cutting measures.
Previously, Revolution Beauty had stated that underlying earnings would be at least on par with the £12.6m reported the previous year, excluding a £10.2m write-off on old stock. Despite this, Revolution Beauty expressed confidence in a return to overall growth in the next financial year.
In November, the group reported pre-tax losses of £10.9m for its half-year to August 31, compared to profits of £400,000 a year earlier, after witnessing a fifth of its sales slump and writing off old stock amid a strategy overhaul. The company has been taking steps to simplify its product range and increase clearance promotions to shift old stock.
Under the guidance of chief executive Lauren Brindley, Revolution Beauty has been undergoing a makeover to leave behind a tumultuous few years, which included a disagreement with its former boss and a row with shareholder Boohoo. The company was plunged into crisis in 2022 when auditors declined to approve its accounts for the previous year.
This led to an investigation into the business and its shares being suspended from the London Stock Exchange. Revolution found itself in a tussle with Boohoo, which owns more than a quarter of the company’s shares, over demands to change its leadership team.
The issues peaked with the resignation of co-founder Adam Minto as well as ex-chief executive Bob Holt and chairman Derek Zissman. Earlier this year, it reached a settlement with disgruntled former major shareholder Chrysalis Investments over legal claims against the brand.
Chrysalis had threatened to sue Revolution Beauty after purchasing shares in the firm when it floated in July 2021 for over £40m before selling its stake in late 2022 for about £5.7m – a mere fraction of its initial investment. Recently, Revolution Beauty stated that it was seeing progress in its revamp plan, with sales of core ranges gaining momentum.
In its most recent announcement, Revolution Beauty expressed optimism about the future, stating: “Revolution Beauty is confident in a return to overall growth in 2025-26, as new strategic growth initiatives such as the launch of the new Skin brand, the relaunch of our value brand Relove, and as the core (products) growth accelerates globally.”
