Revolution Beauty projects a sales rebound as strategic initiatives take effect, despite a challenging financial year.
- The London-listed company’s Q4 2025 outlook anticipates a return to growth, with acceleration projected into 2026.
- Product simplification led to a one-off stock provision of £11.3m but positions the brand for revitalisation.
- Core product sales have shown positive signs with a 6% rise in H1, increasing to 16% in the second quarter.
- Despite a 20% drop in first-half net sales, cost-saving measures have reduced operating costs significantly.
Revolution Beauty, a London-listed company, has set its sights on a resurgence in sales growth as part of its strategic recovery efforts, following a challenging financial period. The company revised its outlook to forecast growth return in the fourth quarter of the 2025 financial year, with expectations of continued acceleration into 2026. This optimistic projection comes after a turbulent phase marked by financial losses and strategic restructuring.
The initial half of the financial year saw a notable 20% decline in net sales, amounting to £72 million, compared to the same period in the previous year. This reduction is largely attributed to an intentional clearance of stock as part of the company’s strategy to streamline its product portfolio. In alignment with this simplification strategy, Revolution Beauty reported a one-time, non-cash stock provision amounting to £11.3 million, which was excluded from the financial figures released on Wednesday.
Revolution unveiled a fresh strategy in February, placing emphasis on its masterbrand and core product categories. This strategic shift has already yielded positive results; the company reported a 6% rise in net sales from its core product range during the first half of the year, with sales growth accelerating to 16% in the second quarter in comparison to the previous year. This growth underscores the potential of its core offerings to drive the company’s recovery.
Cost-saving initiatives have been another critical component of Revolution Beauty’s turnaround strategy. The company confirmed that its cost reduction programmes are on schedule, with operating costs excluding marketing costs decreasing by 31%, and administrative costs reducing by 25% compared to the prior year. These reductions underscore Revolution’s commitment to financial prudence as it navigates its recovery plan.
Despite these positive steps, Revolution Beauty is contending with a significant drop in its share price, which has plunged by 40% since the start of the year, and an 89% decrease since its IPO on the London Stock Exchange in July 2021. Additionally, earlier this year, former chief Adam Minto agreed to pay close to £3 million to settle disputes linked to a scandal that erupted in 2022, further adding to the company’s woes. The scandal came to light following auditors’ refusal to approve the company’s accounts for the prior year, which halted share trading. Subsequent investigations uncovered that Revolution had misreported £10 million in sales as revenue that should not have been recorded.
Revolution Beauty, armed with strategic growth initiatives and cost-saving measures, is poised for a gradual recovery amid ongoing challenges.
