Revolution Beauty losses narrow despite ‘well-publicised upheaval’ as board changes take effect

In a trading update for the year ending February 2023, Revolution Beauty posted a total sales increase of 1.7% to £187.8m “primarily due to the reopening of physical stores”. Store revenue increased 8.1% while digital sales dipped 12.1%.

Adjusted EBITDA loss widened to £7.5m as compared to £0.8m in 2022, which the retailer said was “due to increased marketing expenses and higher staffing costs due primarily to increased headcount”.

Loss after tax was at £33.6m, compared to £44.3m in the previous year, partly offset by improved margin.

The beauty retailer said it expects “high single-digit growth in revenue and adjusted EBITDA in the high single-digit millions” in 2024 as it remains mindful of the external environment. 

The group named Lauren Brindley as group chief executive officer effective from September 18, taking over from Bob Holt who will stand down today following a compromise with its largest shareholder Boohoo.

The retailer also announced the immediate appointment of Colin Henry and Chris Fry as independent non-executive directors after Jeremy Schwartz, Rachel Maguire and Matthew Eatough resigned from their roles.

Brindley was most recently the group vice president for beauty and personal care at Walgreens and has previously had senior roles at Boots UK and Boots Retail International.

Alistair McGeorge, executive chair, said: “This solid group trading performance has been achieved during a period of well-publicised upheaval for the business. To that end, I would like to thank my predecessors Derek Zissman, Bob Holt and Elizabeth Lake for their efforts over the past 12 months. Firstly in maintaining the commercial performance of the group, while also overseeing the implementation of new internal protocols and the lifting of the suspension of the group’s shares which are traded on AIM.

“While I have only been with Revolution Beauty for a short period, it is clear to me that the business has the right attributes in place. The expertise of colleagues, combined with the relevance, affordability and strength of the Revolution brand gives me confidence that we can achieve continued growth across our core markets.

“While there is still a lot of work to be done, I look forward to supporting our new CEO, to build on recent momentum within the business and achieve long-term sustainable growth within what is a large and attractive beauty market.”