Revolution Beauty reported a decline in sales as its business simplification strategy accelerates.
The mass-market beauty brand’s total net sales for the first half of its 2025 financial year (ending 31 August) fell 20% to £72m.
The London-listed company said this was driven by a planned rationalization of its product portfolio and the associated elimination of unproductive stocks.
However, net sales for Revolution Beauty’s core product range increased 6% during the period, with growth accelerating to 16% year over year in the second quarter.
The streamlining falls under the brand’s previously announced “Reigniting the Revolution” strategy, which includes accelerating the advancement of Revolution Beauty’s existing and new retail stores.
Underlying adjusted EBITDA for the period was £3.1m, down from £3.5m in 1H 2023.
“Over the past six months, we have made significant progress in our Reignite Revolution strategy,” commented Lauren Brindley, CEO of Revolution Beauty.
“We have significantly reduced our SKU portfolio, enabling us to improve underlying gross margin performance on our core set of SKUs that are growing globally.
“This is a transformational year for us, with a focus on simplifying our business, improving operational efficiency, and positioning us for profitability and sustained success.”
Brindley added that Revolution Beauty is rolling out a new growth strategy and expects to return to growth in the fourth quarter of fiscal 2025.
These include a “reinvigorated” pipeline of make-up innovations, the launch of new skin care products and the global expansion of its low-cost brand Relove.
“I remain strongly confident that our Revolution Reignition strategy will deliver attractive, long-term profitable growth,” he said.
This earnings update follows news that Revolution Beauty has signed manufacturing agreements with beauty brands Carbon Theory and Delicious, in which former founder and CEO Adam Minto is an interested party.
Revolution Labs, a subsidiary, develops and supplies beauty and personal care products for both brands.
The manufacturing contract is expected to generate revenues and profits of £530,000 and £50,000 respectively.
