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Revolution Beauty revenues plummeted 26% year-on-year to £141.6m for the year ended 28 February 2025, reflecting the rationalisation of its product and brand portfolio, as well as softness in the US market.
In its trading update for the full-year, the beauty retailer said it also expects to report FY25 underlying adjusted EBITDA of between £6m and £6.5m.
The company had planned for double digit net sales declines to continue into the first quarter of FY26, driven by the remaining impact of the SKU discontinuations, but March and April have been “softer” than planned due primarily to performance weakness in pure play digital retailers and “weakened” consumer confidence impacting USA performance.
The retailer said it is however encouraged by sales from the rejuvenated New Product Development SKUs launched in February 2025 and plans to build on this success by expanding the digital fast-track programme in the second half of FY26.
A recent Kantar study has also confirmed that consumer consideration to buy Revolution Beauty has “significantly increased” over the last 12 months in the UK, suggesting that the focused brand activity is improving brand health and competitiveness for the future. In the UK the brand is now fourth in the ranking of considered brands for make-up, up from sixth 12 months ago.
As a result, the group expects the impact of lower sales on FY26 EBITDA to be “significantly mitigated”.
In addition, it is expected that the increase in tariffs on goods imported into the US from China will have a consequently lower impact on the company’s cost of goods sold in the market than previously modelled.
The company said it is now engaging with all its retail partners to assess the need for cost price increases as a result of the tariff charge increases whilst seeking to maintain its “competitive positioning” in the USA.
In the official trading update, the group said: “While the board has confidence in the future medium-term prospects for the company, cash management has been tight and it is clear that the delivery of the strategy will benefit from a more robust capital structure with additional capital to invest into the company. As such, the board has been actively reviewing the company’s funding structure.”
