Revolution Beauty has reported a 60 per cent Q1 sales hike as it endures an ongoing leadership battle with largest shareholder Boohoo.
The fast beauty retailer’s business has soared during the first three months of the 2023 financial year, with sales up 60 per cent versus 2022 and earnings of £3.5m – from a loss of £7.4m a year prior.
Revolution Beauty CEO 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.”
Holt added: “Boohoo’s stated rationale for the proposed changes to the Revolution Beauty board is that the focus of the group must switch to growth.
“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.”
This news comes a week after Boohoo announced it is seeking to oust the cosmetic retailer’s leadership team after expressing concerns that it is not delivering shareholder value.
Boohoo is planning to vote against the reappointment of Holt, non-executive chair Derek Zissman and CFO Elizabeth Lake at Revolution Beauty’s AGM tomorrow (June 27.)
Manchester-based Boohoo has reportedly approached ex-THG Beauty CEO Rachel Horsefield to join its independent leadership team for the attempted takeover.
Boohoo holds a 26.5 per cent stake in Revolution Beauty, which makes it the cosmetics group’s biggest shareholder.
Revolution Beauty has hit back at Boohoo’s attempted coup, calling it “value-destructive, opportunistic and self-serving.”
It claimed that Boohoo’s actions are a “cynical attempt” to seize control of the company without financial outlay.
Revolution Beauty is also dealing with with the repercussions of a damning investigation into management failures at the company following “accounting irregularities” under co-founders Adam Minto and Tom Allsworth. Minto stepped down as CEO last November, while Allsworth stood down last week.
Revolution Beauty is seeking to recover funds relating to the “exceptional costs” it incurred as a result of the situation.
