Amid challenges, Revolution Beauty projects a Q4 2025 growth recovery.
- A new strategy targets ‘masterbrand’ and core products for future gains.
- Despite a 20% sales decline, cost-saving measures are proving effective.
- Stock clearance and financial provisions remain key recovery strategies.
- Historical issues resulted in a significant share price drop since IPO.
Revolution Beauty is grappling with a challenging financial landscape. In a recent update, the London-listed company expressed optimism for a resurgence in sales by the fourth quarter of its 2025 financial year, primarily driven by new strategic initiatives. This revision in outlook anticipates an acceleration in growth as these measures begin to manifest.
Central to their recovery strategy is a focus on their ‘masterbrand’ and core product categories. This pivot saw a 6% growth in net sales from core products in the first half of the year, with the second quarter experiencing an impressive 16% year-on-year increase. This move aims to streamline operations and concentrate on high-performing segments to stabilise and eventually elevate the company’s financial performance.
However, the path to recovery is tempered by a noted decline in the brand’s overall sales, which fell by 20% compared to the same period last year, amounting to £72m. This downturn was largely due to a substantial stock clearing effort, part of an overarching intention to simplify the product portfolio. Consequently, an £11.3m one-off, non-cash stock provision was recorded during this period.
Despite these hurdles, the company is making significant strides in reducing its operational expenses, excluding marketing costs. A notable 31% reduction in operating costs and a 25% decrease in administrative costs were achieved, underpinning the company’s efforts to maintain operational efficiency.
Nevertheless, the brand’s stock remains volatile. Shares have plummeted by 40% this year alone and are down 89% since the initial public offering in 2021. Historical discrepancies in financial recordings have exacerbated these issues, with previous auditor refusals to sign off on accounts due to misreported sales figures intensifying market concerns.
Revolution Beauty’s strategic refocus on core products and operational efficiencies seeks to turn the page on its recent financial hardships.
