Cosmetics retailer Revolution Beauty reported “margin improvement” as it prepared to outline revival plans to the City.
Revolution Beauty, which is holding a capital markets day today, said rationalisation of lower-margin lines was ”successfully driving margin improvement”.
It said that as a result of greater focus, full-year adjusted EBITDA is expected to come in between £11m and £12m, and sales growth is ”expected to be in the low single digits”.
The update came as Revolution detailed plans “to transform the business and accelerate growth, with an ambition to drive annual retail brand sales of £1bn by 2030” and make the business a “top-five mass beauty player globally”.
The retailer’s ‘Reigniting the Revolution’ strategy is built on three foundations: “driving the master brand”; “powering core categories” including “significantly reducing the group’s number of SKUs and concentrating on the development of key products”; and “focused global growth” by managing distribution and retail partnerships to maximise returns “with a particular focus on gaining market share in the US”.
Revolution also intends to achieve £10m of cost savings over the next three years, which will be invested in growth initiatives.
Chief executive Lauren Brindley said: “Revolution Beauty is a business with unique capabilities, a loyal gen Z customer base and relationships with some of the world’s best beauty retailers. The strategy that we’re setting out today is about harnessing our strengths and taking the brand back to its roots. We want to build on what we’re best known for − our innovation, speed to market, accessibility and inclusivity.
“By focusing on our Revolution master brand, building smarter operations, maintaining financial discipline and energising our teams, we believe we will deliver long-term profitable growth.