British cosmetics maker Revolution Beauty reported a 20 percent decline in revenue to £72.4 million ($91.6 million) and a 48 percent decline in profit in its first-half earnings on Tuesday.
The company, which is known for its affordable skin and makeup âdupesâ of premium items, embarked on a turnaround plan earlier this year that has seen it reduce its overall product count to focus on top performing lines and sell through slow-moving stock at discounted rates. It said it expects a return to growth in the fourth quarter and that cost-saving programmes focused on distribution and administrative costs are working. It previously had seven brands; it now has just three.
However, the companyâs profitability is struggling. In its full-year earnings in June, it grew profit before tax to £11.4 million up from a £33.9 million loss the previous year. But it swung back to a £10.4 million loss in the first half of this fiscal year. The company said its profit on a more underlying basis had improved. It is eyeing fresh growth opportunities with plans to enter Walmart in January 2025, as well as other major retailers in Europe.
Chief executive Lauren Brindley said it was a year of transformation. âWe now have a core portfolio that is growing globally⦠as we look to the second half and beyond, we have a strong pipeline of growth initiatives,â she said in a statement.
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Revolution Beauty Expects Return to Growth by Year-End
The affordable cosmetics line improved profitability, but expects revenues to slump in the first half of 2025 before returning to growth.
