Revolution Beauty expects sales to fall by a quarter in blow to turnaround plans
Revolution Beauty expects sales to fall by around a quarter in 2025 in a blow to the troubled cosmetics firms’ turnaround plans.
The London-listed group said it had experienced some sales softness in its digital channels and an element of de-stocking from US retailers in December.
It has also pushed back the launch of certain retail partnerships from the fourth quarter of 2025, to the first half of 2026.
Underlying pre-tax earnings are expected to fall in the “high single digit millions,” it said in a statement markets on Thursday.
Revolution Beauty is in the midst of a turnaround after an investigation in 2022 discovered accounting irregularities, resulting in a boardroom coup and a collapse in its valuation.
The firm told shareholders in October its cost-cutting and simplification plan had driven a 20 per cent year-on-year decline in revenues to £72m.
Earnings have also been hit by its efforts to clear-out of slow-moving stock to generate more cash, with an £11.3m charge also announced in October.
Revolution Beauty said on Thursday it had discontinued over 6,000 unproductive SKUs – stock keeping units – in 2025, which is around two-thirds of its inventory.
The retailer said it is confident of a return to overall growth in 2026 amid a number of brand launches including SKIN and RELOVE.
Cash balances were £6m at the end of December, with net debts of £26m including a fully drawn revolving credit facility (RCF).
The stock enjoyed somewhat of a revival in the 30 days leading up to January, rebounding 39 per cent.