Revolution Beauty has again trimmed its profit forecast for the 2025 financial year but has pointed to green shoots of recovery in current trading and future outlook.

The embattled beauty brand said it expects to report underlying adjusted EBITDA of between £6m and £6.5m for the full 2025 financial year, after it discontinued over 6,000 SKUs to “create a scalable and profitable foundation for future growth”.

Sales for the period were down 26% year-on-year to approximately ÂŁ141.6m due to the rationalisation of the product and brand portfolio.

Revolution Beauty said it had planned for double digit net sales decline to continue into the first quarter of the 2026 financial year, however, it said March and April had “been softer than planned” due to “performance weakness in pure play digital retailers” and weakened consumer confidence in the US.

Nevertheless, it said management has been “encouraged by sales from the rejuvenated” new product range launched in February and “plans to build on this success by expanding the digital fast-track program in the second half” of FY26.

The retailer also said that consumer awareness of the brand has “significantly increased” over the last 12 months in the UK and that it had expanded its retail distribution into major international retailers such as Walmart in the US and DM in Germany.

It said that managements continues to “reduce costs in line with performance” due to the slow start to the year, but said it expects the impact of lower sales on FY26 to be “significantly mitigated”.

Revolution Beauty said it also “very much welcomes” the May 11 announcement regarding lower tariffs between the US and China. In FY25, 23% of Revolution Beauty’s sales were generated in the US, with approximately 60% of its products sold in the country being manufactured in China.

The beauty retailer also said that cash has been “tight and it is clear that the delivery of the strategy will benefit from a more robust capital structure”. Revolution Beauty said it was in “active and constructive dialogue with its banking partners” regarding extending its current £32m revolving credit facility.

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