Revolution Beauty Shares Drop 40% as Sales Fall and Funding Review Begins
Revolution Beauty has reported a 26% drop in annual revenue and is now reviewing its funding options ahead of the expiry of its existing credit facility in October. The post Revolution Beauty Shares Drop 40% as Sales Fall and Funding Review Begins appeared first on Global Cosmetics News.
THE WHAT? Revolution Beauty has reported a 26% drop in annual revenue and is now reviewing its funding options ahead of the expiry of its existing credit facility in October.
THE DETAILS The UK-based beauty brand posted revenues of £141.6 million for the year ending 28 February, citing a reduced product portfolio, weaker US demand, and poor performance in online channels as key factors. Shares fell by up to 40%—a record low for the company. The group expects double-digit declines in Q1 net sales due to discontinued SKUs, with March and April sales underperforming internal forecasts.
The US accounted for 23% of the brand’s revenue in the last financial year, with around 60% of those products manufactured in China. While the recent easing of US-China trade tensions has paused some tariff increases, Revolution is in discussions with retail partners about potential price adjustments in the US.
The company is currently in talks with lenders to extend its £32 million credit facility and says additional capital will be needed to support the business going forward.
THE WHY? The announcement underscores mounting pressure on mid-tier beauty brands navigating a tough retail climate marked by declining online sales, inventory rationalisation, and macroeconomic headwinds. With a heavy reliance on US sales and China-based manufacturing, Revolution Beauty remains exposed to tariff volatility and shifting consumer confidence in its key markets.
Source: Insider Media
The post Revolution Beauty Shares Drop 40% as Sales Fall and Funding Review Begins appeared first on Global Cosmetics News.
