Technology

Revolution Beauty focuses on US expansion despite growing losses

Revolution Beauty has announced plans to expand its presence in the US market, despite losses in the first half of £ 15.2 million due to rising costs.

Cosmetology retailers have revealed that despite the Group’s revenue growth of 39% to £ 78.6m, it suffered a six-month loss through August 31st.

Performance was driven by the growth of international store groups across many categories. North America Storegroup + 102%; UK Storegroup + 78% and ROW Storegroup + 56% COVID-19 Related transaction restrictions.

Retailers added that adjusted EBITDA also increased by about 39% compared to the first half of last year to £ 5.1 million.

During the period, the company said it managed “accelerating growth and brand presence” in North America. North America is currently the largest store area in the group, accounting for 26% of sales.

He added that the new partnership with leading retailers will continue this growth and agree to launch 2,800 stores in the United States and 350 stores in the United Kingdom. boots It will open a store in the UK by February next year.

CEO Adam Minto said: We have continued to focus on accelerating the realization of our strategy to expand the worldwide distribution of Revolution Beauty brands. Double sales in the US, grow the global community to about 7 million people, London Stock exchange.

“We have expanded our global distribution to launch the Makeup Revolution brand in the US target store of 1,800 in the first half of the year, increased the number of direct sales customers by more than 200,000, and launched it in the US store of 2,800 from the fourth quarter. Signed an agreement to launch 350 UK boot stores from February. 2022. “

He added: “Our digital-first strategy underpins our success. We are ahead of the market by combining the ability to predict trends through social and influencer-led marketing approaches with the speed to market. This approach allows in-store distribution as more retailers come to us in search of market-leading innovations while the DTC digital customer base is growing strongly. It means that the network is growing in the major markets of the United States and the United Kingdom.

“As expected in October trading updates, driven by the launch of Halloween and Christmas trading, sales grew online and across stores, in the first half of the year towards the peak of seasonal beauty in the third quarter. We continued to have strong momentum. We continue to pay attention to the ongoing volatility and turmoil caused by the pandemic, but we are confident that we will meet the expectations of the market for the whole year. “

He concluded that: “As Revolution Beauty continues to attract new customers around the world, medium- to long-term growth drivers and mass beauty opportunities continue to be strong, giving us confidence in our strategy, business model resilience and differentiated products. I’m waiting. “

https://www.retailsector.co.uk/623552-revolution-beauty-eyes-us-expansion-despite-losses-widening/ Revolution Beauty focuses on US expansion despite growing losses

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