Revolution Beauty has posted a strong uplift in full-year sales and profits, which boss Adam Minto believes will continue as value-conscious shoppers “accelerate” the D2C brand’s growth.
Revolution Beauty recorded a 42% surge in revenue year on year to £194m in the 12 months to February 2022, driven by record sales in its fourth quarter.
In a trading update, the beauty brand said it expected full-year adjusted EBITDA to rise 73% year on year to approximately £22m, which the retailer said was “achieved against a background of inflationary pressures last year, including freight- and pandemic-related volatility”.
Minto said that the brand’s price range across its cosmetics, haircare and skincare ranges meant it was well-placed for long-term growth as customers face a cost-of-living crunch globally.
“There’s a lot of worry about the consumer and that is understandable. For us, we have had US success for a long time and, being a value-positioned business, that customer is absolutely trading down to value and buying lots and lots of Revolution products.
“We know from the data on our website, as well as Superdrug and Boots, that we are capturing a new customer base who is slightly older and coming into us now more than ever before.
“Our proposition of offering incredible products at affordable prices is going to see us accelerate.”
The beauty brand expanded its store presence in its fourth quarter with Boots partnerships in the UK. Minto said it is focusing on upping its presence in retailers that offer “mass and prestige beauty”, such as Boots in the UK and Ulta in the US.
Revolution Beauty is also expanding its range in skincare, haircare and ranges catering to male shoppers this year in order to capture more spend from value-conscious beauty shoppers.
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