Revolution Beauty posts 20 percent sales decline

For the first half year, Revolution Beauty Group revenue declined by 20 percent to 72.4 million pounds, driven by the planned simplification of the product portfolio and the discontinuation of unproductive SKUs.

The company said in a release that the decline also reflects significant stock clearance activity in the first half of FY24.

Commenting on the first half trading update, Lauren Brindley, the company’s chief executive officer, said: “This is a year of transformation for Revolution Beauty, and our performance in the first half reflects the steps we have taken to position the group for long-term, profitable growth.”

The company added that revenue growth from core SKUs rose 6 percent in the first six months and accelerated to 16 percent in the second quarter.

Underlying adjusted EBITDA increased to 3.9 million pounds and the company improved its underlying gross profit margin by 20bps.

As part of the Reigniting the Revolution strategy, the company rationalised its portfolio from seven brands across eleven categories to three brands across seven categories, with a core range of 1,058 SKUs.

Revolution Beauty signed a new relationship agreement with DM Germany with a launch in 850 stores in January 2025. The company will also expand its reach through 250 new Boots stores in the UK in October 2024. Additionally, the company said, Walmart US will carry a full assortment of Revolution Beauty products in more than 1800 stores from January 2025 and Amazon US first party business selling on a wholesale basis, is performing well in early months of trading.

The group reiterates its guidance that sales for FY25 are expected to decline year on year at a slightly lower rate than in the first half period. The company further said that it expects to return to growth in the fourth quarter as several of the group’s new strategic growth initiatives take effect, and this growth is expected to accelerate through FY26.

Underlying adjusted EBITDA is expected to be at least in line with FY24 as previously guided, prior to the one-off stock provision announced on October 9, 2024.

“As we look to the second half and beyond, we have a strong pipeline of growth initiatives, including new and expanded retailer relationships, a reinvigorated pipeline of make-up innovation, the launch of our new skincare range and the global expansion of our budget brand, Relove. As these initiatives start to take effect, we expect a return to growth in Q4 and anticipate that this will accelerate through FY26,” added Brindley.