Revolution Beauty is set for a recovery with a new strategy aimed at reversing recent financial struggles.
- The company forecasts renewed sales growth by Q4 of 2025, advancing into 2026.
- Net sales dropped 20% in the first half of 2024, mainly due to stock clearance efforts.
- Cost reduction measures have led to a substantial decrease in operating expenses.
- Share prices have drastically fallen since 2021’s IPO due to financial missteps.
Revolution Beauty is taking strategic steps to overcome financial difficulties experienced earlier this year. The London-listed company has revised its sales outlook, anticipating a return to growth in the fourth quarter of the 2025 financial year. This recovery is expected to gain momentum into 2026, driven by new strategic initiatives designed to revitalise the brand.
The company’s net sales in the first half of 2024 were reported at £72 million, which represents a significant 20% decrease compared to the previous year. This decline was primarily attributed to extensive stock clearance efforts as part of a broader plan to simplify its product range. Despite this, the company has noted a 6% increase in net sales from its core product range during the same period. Notably, in the second quarter, this growth accelerated to 16%.
Revolution Beauty has also highlighted the effectiveness of its cost-saving programmes. Operating costs, excluding those for marketing, have decreased by 31%, and administrative expenses have dropped by 25% from the previous year. These reductions are in line with the company’s targets, reinforcing its commitment to enhancing financial performance.
Despite current challenges, the company projects that its underlying adjusted EBITDA for 2024 will meet or exceed expectations set prior to the one-time stock provision of £11.3 million. These optimisations are part of a comprehensive recovery strategy following a steep 40% decline in share value since the start of 2024 and a striking 89% decrease since the initial public offering in July 2021.
Revolution Beauty’s financial woes were compounded by revelations of a scandal in 2022, where auditors refused to approve the company’s accounts, citing inaccuracies. This led to the halting of share trading, with investigations revealing that £10 million in sales had been improperly reported as revenue. Earlier in the year, former chief Adam Minto settled disputes arising from this crisis, agreeing to repay nearly £3 million to the company.
Revolution Beauty’s strategic initiatives signal a determined effort to restore financial health and market confidence.
