Revolution Beauty has reported a 60% rise in sales year-on-year as it claims it is “appropriate to update all shareholders on the group’s most recent trading performance” despite the requisition notice by Boohoo.
In the three months of the financial year that ended on 28 February 2023, the beauty retailer saw a rise in gross margins from 41.7% last year to 48.2% this year.
Underlying earnings at constant currency rates sat at £3.5 million, compared with £7.4 million in the same period last year.
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According to the company, this trading update “demonstrates the quality of its products and consumer offer, and its ability to deliver growing sales into an expanding global retailer base.”
“The excellent trading performance in the first quarter of the year is a 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,” Revolution Beauty CEO Bob Holt said.
Alongside, “fixing” the issues overseen by previous management, Bolt claimed improved cost controls and other processes have been put in place, following calls made by Boohoo, which owns a 26.6% stake in the company, for an emergency meeting to oust its leadership team.
Earlier, the fast fashion retailer revealed it wants former THG Beauty CEO Rachel Horsefield to join Revolution Beauty’s board.
According to Boohoo, Horsefield brings “a wealth of directly relevant experience and expertise in the beauty sector”.
However, according to Revolution Beauty “the focus of the group must switch to growth.”
It said the move “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 added that it “continues to be of the view that it is much better placed than the proposed Boohoo candidates to deliver shareholder value” and reminded shareholders that former CEO of The Body Shop and managing director of L’Oréal, Jeremy Schwartz, who is already a director at the company, brings “a wealth of experience in the beauty sector“.
“Therefore, Ms Horsefield’s proposed addition to the board is not required,” the company said in a statement.
Boohoo 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.”
Additionally, it has requisitioned a general meeting of Revolution Beauty and proposed to remove Bob Holt, Elizabeth Lake and Derek Zissman as directors and to appoint Alistair McGeorge and Neil Catto as directors.
If appointed, it is expected that McGeorge will be appointed interim executive chairman and Catto as CFO of Revolution Beauty.
