Revolution Beauty appoints new CEO as it reports falling losses
Revolution Beauty appoints new CEO as it reports falling losses
- Lauren Brindley will become Revolution Beauty’s new CEO on September 18
- She replaces Bob Holt, who agreed to step down earlier this summer
- Revolution Beauty reported pre-tax losses fell to £33.9 million last year
Revolution Beauty has appointed a new CEO as it released full-year results showing that losses fell in a turbulent period for the company.
Lauren Brindley will become head of the cosmetics company on Sept. 18, having most recently been responsible for beauty and personal care at US pharmacy giant Walgreens Boots Alliance.
Brindley also spent many years at Boots, where she headed the prestigious beauty and fragrance division and the No. 7 skincare brand.
Improvement: Revolution Beauty revealed that pre-tax losses fell from £45.9m last year to £33.9m, largely due to a drop in freight costs and stock provisions
She replaces Bob Holt, who earlier this summer agreed with chairman Derek Zissman to step down after a falling out with online retailer Boohoo.
Boohoo, Revolution’s largest shareholder, was among the majority of investors who voted to remove the couple at an annual general meeting in June, as was CFO Elizabeth Lake.
However, the three were reinstated by an independent director hours later, though Boohoo subsequently reached a deal that meant Holt and Zissman left.
Alistair McGeorge, Executive Chairman of Revolution Beauty, said: “Lauren’s extensive knowledge of the beauty and retail industry, and proven track record of delivering meaningful results, will be critical as we build Revolution Beauty into a global leader in the beauty industry. field of beauty.’
Brindley faces the major challenge of reviving a company that has struggled with slowing trading since going public on the London Stock Exchange two years ago.
Revolution reported on Thursday that revenues rose just £3.2 million to £187.8 million in the 12 months ending February.
Stronger retail demand as a result of new product introductions at Boots and Walgreens stores helped offset declining sales from digital partners caused by customers reducing inventory levels.
Yet pre-tax losses fell from £45.9m last year to £33.9m, largely due to a reduction in freight costs and inventory provisions.
Following the announcement, shares of Revolution Beauty Group were down 17.1 percent to 28.4p on Thursday afternoon.
Trading in the Kent-based company’s shares was suspended last September when the group failed to publish its financial year 2022 accounts on time.
An accounting investigation found that Revolution had inflated sales by £9 million to meet its annual targets, while co-founder Tom Allsworth and former CEO Adam Minto made loans or other investments without the board’s knowledge.
Eventually, Revolution shares were allowed to trade again at the end of June.
However, the Financial Conduct Authority has since launched an investigation into the company for suspected market abuse breaches.
The company said it was “fully cooperating” with the investigation and would update markets “in due course.”
Revolution reports excellent trading performance, with sales up 60 percent in the first quarter.
The challenging economic conditions could even benefit the company, said Julie Palmer, a partner at corporate restructuring specialist Begbies Traynor.
She said this is because consumers tend to buy cheaper luxury items rather than expensive items during such times – a phenomenon known as the “lipstick effect.”