Revolution Beauty experiences a notable decline in sales amid a strategic transformation.
- The company’s EBITDA decreases by 11% as part of a restructuring strategy.
- Despite a drop in total sales, a core range of products shows growth.
- Expansion plans include broadening partnerships with major retailers.
- Forecasts suggest growth resurgence in the final quarter with new initiatives.
Revolution Beauty is currently navigating through a significant transformation period, marked by a discernible decline in sales. As the company categorises this year as ‘transformational’, it has reported a decrease in its underlying adjusted EBITDA by 11%, dropping to £3.1 million from £3.5 million the previous year.
Total net sales experienced a substantial decline of 20%, attributed primarily to a planned simplification of the product portfolio, which involved the discontinuation of unproductive SKUs. This strategic approach, however, has simultaneously led to an increase in sales from its core product range, which rose by 6% year-on-year for the first half of the year and surged by 16% in the second quarter.
In alignment with its growth strategy, Revolution Beauty is set to expand its partnership with Boots, adding 250 new stores across the United Kingdom this month. Further, the company aims to strengthen its distribution network by collaborating with Walmart, with plans already in place for a new Amazon shop set to launch in the country.
The company’s leadership, under CEO Lauren Brindley, remains optimistic about a return to growth in the final quarter of the year as it implements its new strategic growth initiatives. Key initiatives include the introduction of a reinvigorated pipeline of makeup innovations, the launch of a new skincare range, and the global expansion of its budget-friendly brand, Relove.
The past year has been tumultuous for Revolution Beauty, grappling with legal battles and shareholder unrest following an accounting scandal that resulted in its suspension from the London Stock Exchange. Despite these challenges, the ‘Reigniting the Revolution’ strategy launched in February is expected to facilitate long-term, profitable growth.
Revolution Beauty remains cautiously optimistic about its strategic initiatives catalysing future growth, despite recent fiscal challenges.
