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Revolution Beauty Group PLC shares plunged on Tuesday as it said it expects to report lower revenue for the 2025 financial year amid weak US and digital demand. The London-based cosmetics retailer said revenue in the 12 months to the end of February was £141.6 million, down 26% from £191.3 million in financial 2024. It said the lower revenue reflected its rationalisation of the product and brand portfolio, while previously reported softness in the US market and on digital channels continued into January and February. Shares in Revolution Beauty fell 39% to 4.56 pence in London on Tuesday morning. The stock is down 84% over the last 12 months and by 97% since floating at 170.00 pence in 2021. It expects to report underlying adjusted earnings before interest, tax, depreciation and amortisation between £6.0 million and £6.5 million, against £12.6 million the year before. Heading into financial 2026, Revolution said volumes in March and April have been ‘softer than planned,’ amid expectations for double-digit net sales declines to continue. The company said recent sales were down due to weakness in pure play digital retailers and weakened consumer confidence impacting US performance. Given the slower start to the year, Revolution said it continues to reduce costs in line with performance and ‘capture the benefits of having a simplified product and brand portfolio’. It expects the impact of lower sales on Ebitda in financial 2026 to be ‘significantly mitigated’. On tariffs, the firm welcomed the deal between the US and China to lower tariffs for 90 days. It noted that 23% of its sales were generated in the US during financial 2025, with 60% of its products sold in the US being manufactured in China. It expects the decrease in tariffs to result in a lower impact on cost of goods sold than previously modelled, but said it will continue to assess this following Monday’s announcement. Following the deal, it said it has been able to authorise shipments where new product development launches dictate. ‘The company is 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 Revolution Beauty’s competitive position in the US,’ the company said. Revolution said it has confidence in its medium-term prospects, though cash management has been tight. It noted that it would benefit from a more robust capital structure and is reviewing its funding structure as a result. Revolution said its £32 million revolving credit facility runs to October, and its banking partners ‘remain supportive’. It has been in ‘active and constructive dialogue’ to amend and extend the current agreement ‘to provide adequate flexibility for the company going forward’. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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