Revolution Beauty has raised both its full-year profit and sales guidance after a marked improvement in trading since its Capital Markets Day back in February.
The cosmetics retailer said today it had delivered “strong operational performance and year-on-year improvement in profitability” since its Capital Markets day on February 8, 2024, and now expects to report adjusted EBITDA of at least £12.5m and revenue growth of approximately 2% for the end of full year 2024.
The previous guidance was for profits of between £11m and £12m and revenue growth in the low, single digits.
In its trading update today, Revolution said it would continue focusing on its Masterbrand, core categories and “select geographies” to deliver future growth, as outlined at its CME.
It said this strategy is “progressing well” and while the “exit of lower margin products and brands is causing a short-term impact on sales”, Revolution believes “there’s clear evidence that the longer-term benefit to profitability is already materialising”.
Combined with the retailer’s £10m cost-saving programme, Revolution said it “remains well-placed to deliver on its future growth ambitions”.
Revolution Beauty group chief executive Lauren Brindley said: “It is early days, but we are already seeing positive impacts from the new strategy, including an encouraging response from our major customers and good progress on our cost-savings programme. Our focus on driving sales from our more profitable brands is starting to deliver, with double-digit growth in sales of our core “Revolution” Masterbrand versus the second half of FY2023.
“Our major product launches for 2024 are ahead of plan as we focus on fewer and more impactful new products. We also opened our TikTok shop this week and are preparing to go live with a new direct Amazon US partnership in May 2024.
“I remain highly confident about our growth prospects and our ability to become a top five mass beauty player.”
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