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The cosmetics retailer Revolution Beauty has issued a stark warning to investors, projecting a 25 per cent decline in sales for the 2025 financial year. The announcement triggered an immediate market reaction, with shares tumbling more than 20 per cent.
The Aim-quoted company, which counts fashion giant Boohoo among its major stakeholders, revealed that its underlying earnings are expected to fall below £10 million, a significant downturn from its previous forecast of £12.6 million. The company cited weakness in its online business and inventory reduction by US retailers as primary factors behind the decline.
The troubled beauty retailer has been implementing an aggressive streamlining strategy, having discontinued over 6,000 “unproductive” products, representing approximately two-thirds of its stock portfolio. Despite these challenges, Revolution Beauty maintains that its core product lines have shown growth, expressing confidence in a return to overall growth by 2026.
The company’s recent struggles follow a tumultuous period that saw its shares suspended from trading on the London Stock Exchange between September 2022 and June 2023, after auditors BDO refused to sign off on its maiden accounts as a listed business. The organisation also weathered a leadership crisis when major shareholder Boohoo campaigned for management changes.
While several retail partnerships have been postponed until the first half of 2026, the company confirmed its planned launch with German retailer DM remains on schedule for next month. Market analyst Wayne Brown from Panmure Liberum suggests the new contracts beginning March 2025 could generate positive momentum alongside cost-saving benefits.
Revolution Beauty’s shares, which initially floated at 160p in 2021, closed at 11¼p, marking their lowest level since the IPO and reflecting growing investor concerns about the company’s immediate prospects.
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