Revolution Beauty has reported a jump in sales and believes it is “appropriate to update all shareholders on the group’s most recent trading performance” in light of the requisition notice by Boohoo

Revolution Beauty products

Revolution Beauty insists it has ‘a strong platform in place to deliver continued profitable growth’

Sales leaped 60% year on year in the first three months of its 2023/24 financial year and gross margins were 48.2%, compared with 41.7% in the same period last year.

EBITDA was at £3.5m and the beauty retailer said the trading performance “demonstrates the quality of Revolution Beauty’s products and consumer offer” and its ability to ”deliver growing sales into an expanding global retailer base”.

As Boohoo has proposed changes to the Revolution Beauty board and wants the group to “switch to growth”, the company said it hopes the update has “reassured” shareholders and that growth is being delivered “without one shareholder taking control of the board at the expense of the interests of other shareholders”.

The retailer also said the latest trading performance was delivered at the same time as rectifying the “significant historical issues” that occurred under the previous management.

Revolution Beauty chief executive Bob Holt said: “The excellent trading performance in the first quarter of the year is a testament to the quality of our offer and the strength of our leadership team, and shows that we are delivering on our global retailer strategy. This has been achieved at the same time as fixing the historical issues overseen by previous management and putting in place improved cost controls and processes across the business.

”Revolution Beauty has clear positive momentum and we remain focused on restoring trading in the company’s shares. We have a strong platform in place to deliver continued profitable growth.”

In a response to the latest announcement from Boohoo that it has the intention to include former CEO of THG Beauty, Rachel Horsefield, Revolution said: “The board of Revolution Beauty believes that Boohoo’s announcement yesterday vindicates its view, as stated in the company’s announcement of June 21, 2023, that Alistair McGeorge and Neil Catto (Boohoo’s two current board candidates for Revolution Beauty) do not have the relevant experience in running a business in the beauty sector, nor in supplying a store estate and beauty product range that is focused on the high street.”

“The board of Revolution Beauty continues to be of the view that it is much better placed than the proposed Boohoo candidates to deliver shareholder value. Together with a broad executive leadership team with significant beauty and ecommerce expertise, the company reminds shareholders that in Jeremy Schwartz, they already have a director with a wealth of experience in the beauty sector.

“Jeremy spent 12 years at L’Oréal, including as managing director in the UK responsible for all consumer, luxury, salon and active cosmetics divisions, and five years as chair and CEO of The Body Shop, which has some 3,000 stores in 70 countries. Therefore, Ms Horsefield’s proposed addition to the board is not required.”

This comes as Boohoo is facing a shareholder revolt, following its AGM which was held yesterday, regarding the fashion retailer’s proposed executive bonuses.

A total of 32.5% of Boohoo’s shareholders voted against the remuneration report after advisory firms reportedly suggested that investors should reject it.

Boohoo said in a statement: “The Board notes that while Resolution 2 was approved, which gave shareholders the opportunity to cast an advisory vote on the Directors Remuneration Report for the year ended 28 February 2023, 32.48% of the votes cast were votes against Resolution 2.

“Over the coming months, the Board will reflect on the result of Resolution 2, and the Remuneration Committee looks forward to ongoing engagement with the Group’s shareholders as it continues to shape the Group’s future remuneration policy.”

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