Revolution Beauty has reported a dip in digital sales from the delayed results from its FY22 accounting probe.
The fast-beauty retailer’s digital wholesale revenue dipped 22% and own web sales 8% for the six months ending 31 August, 2022.
The company’s operating losses fell to £12.1m compared with £23.7m the previous year.
Loss before tax was also reduced to £13.3m million from £28.8m in 2021.
This news comes hot on the heels of Revolution Beauty co-founder Tom Allsworth resigning as the company’s losses widen during the ongoing audit investigation.
However, the brand reported a 21% increase year-on-year in its UK store revenue.
This was “helped by new distribution in Boots and good performance across Superdrug stores”, said a spokesperson for the brand, as well as pandemic restrictions lifting.
Revolution Beauty said its performance had improved in the second half of the year, with the company expecting to report single-digit revenue growth in both FY23 and FY24.
“The publication of these figures represents an important step as we work towards lifting the suspension of Revolution Beauty shares,” said CEO Bob Holt.
“The [first] half was one where our digital business was impacted by consumers moving back to bricks-and-mortar retail stores post-pandemic, but where Revolution’s omnichannel retail strategy mitigated the decline, with solid retail performances in our key markets.
“Our future growth is first and foremost via a global retailer strategy.
“Our direct-to-consumer online customer base grew in the year, albeit we recognise the sentiment of a decline in online sales.
“Overall, performance was resilient in the first half of FY23 financial year, and the group narrowed previous losses and saw significant margin expansion.”
What has been happening at Revolution Beauty?
An accounting probe by auditor BDO was launched into Revolution Beauty in September 2022 after the beauty brand failed to publish its final results for FY22.
The investigation halted the company’s share trading and has since uncovered a string of serious accounting and management failures.
These included co-founders Adam Minto and Allsworth making personal loans of around £1m to distributors and a senior employee, which they did not disclose to the board.
Minto stepped down as CEO of the company in November 2022 during the middle of the accounting probe.
He was succeeded by Holt, who remains “confident” in the company's future.
Non-Executive Directors Gita Samani and Edward Rumsey also resigned during the process.
Read more:
- Revolution Beauty secures £32 million finance boost
- Revolution Beauty appoints new US President amid accounting fiasco
- Boohoo increases stake in Revolution Beauty to become largest shareholder
