Revolution Beauty cuts profit guidance as sales plunge

Revolution Beauty saw sales plunge in its latest trading update, following the rationalisation of its products.

The beauty giant said it expected to pull in underlying adjusted EBITDA of between £6m and £6.5m for the year ended 28 February, after growing its pre-tax profit to £11.4m last year, with adjusting items including an adjustment for stock provision charges related to its non-strategic stock of £9.2m.

Sales were down 26% year on year, falling to around £141.6m, which it said reflected the rationalisation of its product and brand portfolio.

The company said sluggish sales across the US market and its digital channels continued into January and February.

Cash balances at the end of February came in at £5.7m, while net debt was £26.3m with a revolving credit facility of £32m.

The retailer highlighted that it had been a “transformational year” where it had discontinued more than 6,000 SKUs to “create a scalable and profitable foundation for future growth”. It noted that it was continuing to transition its global retail partners onto this core set of products.

The company said it had planned for double digit net sales declines to continue into the first quarter of FY26, driven by the remaining impact of its SKUs discontinuations.

However, it noted that March and April were softer than planned due primarily to performance weakness in pure play digital retailers, excluding Amazon, and weakened consumer confidence impacting US performance.

Despite this, it highlighted that it was encouraged by sales from its rejuvenated new product development SKUs launched in February, and planned to expand its digital fast-track program during the second half of FY26.

Looking ahead, Revolution expects the impact of its lower sales on FY26 EBITDA to be significantly mitigated, with its continued focus on cost and inventory management.

Last month, Revolution Beauty reported that CEO Lauren Brindley would be stepping down from her position as group CEO and as a member of the board on 31 May 2025.

Brindley is leaving the business to join Ulta Beauty, Inc., the largest beauty retailer in the US, as chief merchandising and digital officer.

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