
Revolution Beauty has warned of a 25% drop in sales for the financial year ending 28 February 2025, citing softness in digital channels and de-stocking from US retailers in December.
Despite the challenges, the beauty retailer is predicting a return to growth in FY26 thanks to its ongoing transformation and key strategic initiatives.
The company called FY25 “a transformational year” as it made significant changes to its portfolio in FY25, discontinuing over 6,000 SKUs—around 75% of its original range—in order to focus on a more streamlined and profitable set of products.
This transition is ongoing as Revolution Beauty works to move its global retail partners onto the core range.
The group kickstarted its ‘Reigniting the Revolution’ strategy last February, in a bid to reduce its portfolio from seven brands across eleven categories to three brands across seven categories.
Although the business has faced delays with some expected retailer launches, including those in Walmart in the US and DM in Germany, it said both are on track for a February 2025 launch.
Additionally, Revolution Beauty’s core products have continued to see growth, particularly in online channels such as Amazon.
The company reported a positive delivery of operational and cost-saving measures, with an improved underlying gross margin. However, it now expects underlying adjusted EBITDA to be in the high single digits for FY25.
In terms of financial health, Revolution Beauty maintained sufficient liquidity, with cash balances of £6m at the end of December 2024 and net debt of £26m, including a fully drawn revolving credit facility (RCF) of £32m.
Looking ahead, the retailer is optimistic about returning to growth in FY26, with key initiatives such as the launch of its new SKIN brand, the relaunch of its value brand RELOVE, and accelerating sales of core products globally.
It expects these efforts, combined with significant margin improvements, to drive its recovery and long-term profitability.
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