Revolution Beauty: H1 net sales decline by 20 percent

For the six month period, Revolution Beauty reported a 20 percent decline in net sales to 72 million pounds, driven by the planned simplification of the product portfolio and the associated discontinuation of unproductive SKUs. The company said that the decline also reflects significant stock clearance activity in the first half of FY24.

However, net sales from the company’s core range of SKUs grew 6 percent in the first half, with growth accelerating to 16 percent in the second quarter versus the prior year. Underlying adjusted EBITDA reached 3.1 million pounds compared to 3.5 million pounds in the previous year.

Commenting on the trading update, Lauren Brindley, Revolution Beauty CEO, said in a statement: “This year is a transformational year for the company, as we focus on simplifying the business, improving our operational efficiency and positioning ourselves for profitable and sustained success. We expect a return to growth in Q4.”

The company said that the sales for FY25 are now expected to decline year on year at a slightly slower rate than in H1, with a return to growth in the fourth quarter as a number of the group’s new strategic growth initiatives take effect, and this growth is expected to accelerate through FY26.

The company expects full year underlying adjusted EBITDA to be at least in line with FY24.

In partnership with mass beauty retailer DM Germany, Revolution Beauty will launch in more than 850 stores in January 2025. Revolution Beauty is also expanding into 250 new Boots stores in the UK in October 2024. In the US, Walmart will carry a full assortment of the company’s products in more than 1800 stores from January 2025, and its new Amazon US shop, launched in HY25.