Revolution Beauty Group PLC saw its share price drop by a quarter on Thursday, as the group prepares to round off a turbulent few years with a marked sales decline.
Shares in Revolution Beauty were down 25% at 10.62 pence each in London on Thursday morning. The group’s share price has tumbled 64% over the last twelve months.
The London-based cosmetics retailer said it expects to post a net sales decline of around 25% for the financial year due to end February 28, as well as underlying adjusted earnings before interest, tax, depreciation and amortisation in the high single digit millions.
This was primarily due to ‘some sales softness in December’ within its digital channels and ‘an element of de-stocking from USA retailers’, the group said.
Further to this, Revolution Beauty noted that some retailer launches targeted for the fourth quarter of the year have now been pushed back to the first half of 2026. The group reiterated that the scale of the agreements remain the same, and that its entry into Walmart in the US and DM in Germany are still on track to complete by February.
Revolution Beauty had previously said that underlying earnings would be at least in line with the £12.6 million reported last year, excluding a £10.2 million write-off on old stock.
The group swung to a pretax loss of £10.9 million at its interim results, and had launched a series of initiatives to simplify its product offering and increase clearance promotions to get rid of old stock.
Revolution Beauty came under fire in 2022 when auditors had refused to sign off on its accounts for the prior year, which sparked an investigation into the business and led to its shares being suspended from the London Stock Exchange.
Lauren Brindley has been trying to revamp the business since her appointment to the chief executive role in August 2023, following a lengthy struggle with 25% stakeholder boohoo Group PLC that culminated in the resignation of former CEO Bob Holt and Chair Derek Zissman.
The group in early January also reached a confidential settlement with former shareholder Chrysalis Investments Ltd, to which it paid a ‘non-material sum’ related to claims by Chrysalis against Revolution Beauty under the UK financial services & markets act. Neither party admitted liability, and Revolution Beauty had ‘strongly contested’ Chrysalis’ claims.
Revolution Beauty on Thursday said it was ‘confident in a return to overall growth’ in the financial 2026 year, as a result of ‘new strategic growth initiatives such as the launch of the new SKIN brand, the relaunch of our value brand RELOVE, and as the core SKU growth accelerates globally’.
Broker Panmure Liberum has forecast group sales of £142.4 million for financial 2025, falling 29% from £191.3 million last year, and underlying adjusted Ebitda of £7.9 million, down 45% from £12.6 million.
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