Revolution Beauty reveals a significant drop in sales and profits attributed to strategic shifts.
- Adjusted EBITDA decreased by 11%, while net sales fell by 20% due to product portfolio simplification.
- Core range sales showed resilience with an increase of 6% in the first half, accelerating to 16% in the second quarter.
- Expansion efforts include collaboration with Boots, Walmart, and a new Amazon USA shop launch.
- CEO Lauren Brindley expresses confidence in long-term growth following strategic transformations.
Revolution Beauty has faced a challenging first half of the year, with a notable 20% reduction in total net sales to £72 million. This decline is a direct result of strategic decisions aimed at simplifying the product portfolio and discontinuing unproductive SKUs. Such measures are part of a broader initiative to streamline operations and focus on the most promising product lines.
Despite the overall decline, sales of the core product range demonstrated resilience, reporting a 6% year-on-year growth in the first half. This positive trend increased to 16% growth in the second quarter, highlighting consumer interest in key offerings despite the broader reduction in SKUs.
As part of its strategic initiatives, Revolution Beauty is expanding its market presence through a partnership with Boots, which will see its products available in an additional 250 stores across the UK. The company is also strengthening its distribution network by collaborating with Walmart and launching a shop on Amazon’s US platform.
Looking forward, the organisation has revised its sales guidance for the full year, anticipating a slower rate of decline compared to the first half. Revolution Beauty is optimistic about returning to growth in the final quarter, driven by new initiatives such as makeup innovations, skincare range launches, and the global expansion of its budget brand, Relove.
CEO Lauren Brindley stated, “In the last six months, we have made great progress in our Reigniting the Revolution strategy.” Emphasising the focus on streamlining operations and enhancing the core SKU performance, she remains “highly confident” in the company’s ability to achieve sustainable, profitable growth long-term.
Revolution Beauty remains focused on overcoming current challenges by implementing strategic changes designed to ensure future growth and profitability.
