Revolution Beauty Shares Plunge as March and April ‘Softer than Planned’

Revolution Beauty (LON: REVB) shares tumbled even further on Tuesday, down more than 32% in early trading after the company flagged weaker-than-expected sales in March and April, particularly from digital retailers and in the US market.

In a trading update, the beauty brand said revenue for the year ended 28 February 2025 fell 26% to approximately £141.6 million, reflecting the strategic discontinuation of over 6,000 SKUs to streamline operations. 

Underlying adjusted EBITDA is expected to come in between £6 million and £6.5 million, while net debt stood at £26.3 million.

The company reported that while double-digit sales declines were expected to continue into the first quarter of fiscal 2026, recent trading has been “softer than planned.” 

They highlighted weak demand from pure-play digital platforms, excluding Amazon, and lower US consumer confidence.

Despite the difficult start, management pointed to promising sales from new product launches and improved brand awareness in the UK, where Revolution Beauty rose to fourth place in consumer consideration for make-up. 

It also highlighted growth initiatives, including the expansion of its RELOVE budget line and broader retail distribution with major global partners like Walmart and DM Germany.

Revolution said it continues to focus on cost reduction and inventory management to offset the impact of slower sales. 

It also welcomed recent US tariff revisions, which are expected to have a lesser effect on margins than previously feared. 

The company added that it is actively reviewing its funding structure ahead of its £32 million revolving credit facility maturing in October 2025.

“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,” the company wrote.