Revolution Beauty expects a return to growth in the second half of its fiscal year, but warned it expects a decline in revenue over the coming six months, as profit-focused efforts to clear stock and reduce its product portfolio weigh on sales.
In keeping with its strategy announced in February to rebuild its key eponymous brand, other sub-brands and SKUs were reduced, which will likely lead to softened sales in the first half of its fiscal 2025, the company said Wednesday.
Revenue for the full year rose 2 percent to £191 million ($241 million). The company also expects fresh global distribution opportunities and new product innovation to benefit its bottom line.
Meanwhile, efforts to improve profitability appear to be paying off. Profit before tax grew to £11.4 million ($14 million) compared to a £33.9 million ($42.8 million) loss the previous year, as the company successfully reduced marketing spend and resolved inventory issues.
The British beauty company said it remains focused on rebuilding profitability at a group level, and brand equity in its core brand. It has yet to recover from a tumultuous period that saw executive reshuffles and a public fallout with its largest shareholder, the fast fashion retailer Boohoo.
The companyâs share price rose 6 percent following the results, though it has fallen some 30 percent in the last six months.
âAs the strategy continues to take effect, we expect to see a return to growth in the second half of the year,â said chief executive Lauren Brindley. âThat will put us firmly on the right trajectory to achieving our ambition of being a top five player in the mass beauty market.â
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