Revolution Beauty, the recently publicly traded beauty brand, has announced strong growth in its first set of results following its initial public offering (IPO). Despite still experiencing losses, the company’s revenue has shown positive momentum, and it is now planning to further expand its operations in the United States. The US market already accounts for 26% of Revolution Beauty’s sales, making it the brand’s largest market.

Throughout the first half of this year, the company made significant strides in executing its IPO strategy, resulting in profitable growth. Group revenue saw a notable 39% increase, reaching £78.6 million. This growth provides a solid foundation for the brand’s expansion, especially during the peak trading season.

Revolution Beauty’s international store groups saw substantial growth across various categories, driving the brand’s overall performance. North American store groups experienced a remarkable 102% increase, UK store groups rose by 78%, and ROW store groups (rest of the world) saw a rise of 56% as pandemic-related trading restrictions eased.

The company’s brands, including Makeup Revolution, also performed exceedingly well during the first half of the year, achieving a 53% increase compared to the same period in the previous year. This performance is particularly impressive considering the challenges faced by the makeup market during the pandemic.

Despite facing higher freight costs, Revolution Beauty managed to slightly increase its gross margin to 47.9%, up from 47.7%. This increase can be attributed to product margins and customer mix. Additionally, the company experienced digital success, with online sales in this channel growing by 53% compared to two years ago.

Adjusted EBITDA, a measure of profitability, increased by approximately 39% compared to the first half of the previous year, reaching £5.1 million. However, despite these positive results, Revolution Beauty still recorded a net loss of £15.2 million, which was an increase from £6 million in the previous year.

The brand has also made significant progress in establishing a globally balanced business and expanding its international presence, both online and in physical stores. The strong performance has continued throughout the Halloween season, and the company looks forward to a positive start to the Christmas trading period. Revolution Beauty expects this momentum to carry into the fourth quarter.

In terms of future expansion plans, Revolution Beauty has announced intentions to launch its Makeup Revolution line in 2,800 mass-market retail stores in the US during the fourth quarter. Furthermore, the brand plans to introduce Revolution Haircare in 870 Target stores in early 2022. In the UK, the Makeup Revolution line will expand its presence in Boots stores, with a rollout in 350 locations.

Digital expansion is also a priority for Revolution Beauty, as it plans to launch its products on Next, Fashion Nova, River Island, and Forever 21’s online platforms during the fourth quarter. The company’s own webstore, evolutionbeauty.com, experienced substantial growth in customer numbers, particularly in the US, Australia, and New Zealand. Strong digital partnerships have also been established, with Zalando being one of Revolution Beauty’s top three partners.

The brand has found success on social media, particularly on TikTok, where it has amassed a global following of over 6.8 million. This robust social media presence allows Revolution Beauty to reach and engage with a wider audience.

Overall, Revolution Beauty’s growth trajectory is highly promising, with impressive results in its first public reporting period. The brand’s strategic expansion plans and strong performance across multiple channels position it well for future success in the global beauty market.

Useful Links:
1. Revolution Beauty Official Website
2. Zalando Official Website