// Revolution beauty sales rise 60% year on year despite its ongoing saga with its largest shareholder Boohoo
// The cosmetics retailer said the ex-THG CEO of beauty Rachel Horsefield “proposed addition to the board is not required”
Revolution Beauty has said “trading has been excellent” for the first three months of the financial year ending 28 February 2024, with sales up 60% year on year.
The beauty retailer‘s gross margins were 48.2%, compared with 41.7% in the corresponding period last year.
EBITDA at constant currency was £3.5m which the business said demonstrates the quality of its products and consumer offer, and its ability to deliver growing sales into an expanding global retailer base.
In response to Boohoo’s proposed changes to its board, Revolution Beauty said “the focus of the group must switch to growth”.
Earlier this week Boohoo revealed it wants Ex-THG Beauty CEO Rachel Horsefield to join Revolution Beauty’s board, as it looks to oust the online cosmetic retailer’s leadership team.
According to Boohoo, Horsefield “brings with her a wealth of direct relevant experience and expertise in the beauty sector”.
The board of Revolution Beauty said it believes that Boohoo’s move yesterday “vindicates its view, that Alistair McGeorge and Neil Catto (Boohoo’s two current board candidates for Revolution Beauty) do not have the relevant experience in running a business in the beauty sector, nor in supplying a store estate and beauty product range which is focussed on the high street.”
The board said it “continues to be of the view that it is much better placed than the proposed boohoo candidates to deliver shareholder value.”
Together with a broad executive leadership team with significant beauty and e-commerce expertise, the company reminded shareholders that, in Jeremy Schwartz, “they already have a director with a wealth of experience in the beauty sector”.
“Therefore, Ms Horsefield’s proposed addition to the board is not required,” it said in statement.
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Schwartz had spent 12 years at L’Oréal including as managing director in the UK responsible for all consumer, luxury, salon and active cosmetics divisions, and five years as chairman and CEO of The Body Shop.
“The Company hopes that shareholders are reassured that the current board is similarly minded and that growth is being delivered without one shareholder taking control of the board at the expense of the interests of other shareholders,” it said in a statement.
“It is also noteworthy that the group’s trading performance has been delivered at the same time as rectifying the significant historical issues that occurred under previous management.”
As previously announced, the company also intends to appoint Rachel Maguire and Matthew Eatough as non-executive directors, who will “bring robust challenge, fresh ideas and support as the business continues to grow”.
Chief executive Bob Holt said: “The excellent trading performance in the first quarter of the year is testament to the quality of our offer and the strength of our leadership team, and shows that we are delivering on our global retailer strategy. This has been achieved at the same time as fixing the historical issues overseen by previous management and putting in place improved cost controls and processes across the business.
Revolution Beauty has clear positive momentum and we remain focused on restoring trading in the Company’s shares. We have a strong platform in place to deliver continued profitable growth”.
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