Revolution Beauty anticipates a sales decline of approximately 25% in 2025, posing a challenge to the cosmetics company's recovery strategy.

The London-listed firm reported a softening of sales in its digital channels and some de-stocking by US retailers in December, as reported by City AM.

Additionally, the launch of certain retail partnerships has been postponed from Q4 2025 to H1 2026. The company expects underlying pre-tax earnings to drop into the "high single digit millions," according to a statement released to the markets on Thursday.

In the wake of an accounting scandal uncovered in 2022 that led to a boardroom shake-up and a plummeting valuation, Revolution Beauty is undergoing a transformation. In October, the firm informed investors that its cost-cutting and simplification efforts had resulted in a 20% year-on-year revenue decrease to £72m.

Efforts to clear slow-moving stock to improve cash flow have also impacted earnings, with an £11.3m charge disclosed in October.

On Thursday, Revolution Beauty announced it had eliminated over 6,000 unproductive SKUs in 2025, which represents about two-thirds of its inventory. Despite these challenges, the retailer remains optimistic about achieving overall growth in 2026, buoyed by several brand launches including SKIN and RELOVE.

As of the end of December, the company's cash balance stood at £6m, with net debts of £26m, including a fully drawn revolving credit facility (RCF).