Shares in Revolution Beauty have fallen by 97% since its IPO in 2021, after the firm reported what one analyst described as an "ugly" trading update.

In the year to 28 February, revenues at the beauty retailer dropped 26% year-on-year to £141.6m, as a result of softness in the US market and on digital channels.

The company is expecting an EBITDA in the full year between £6m and £6.5m, with a net debt and revolving credit facility of £26.3m and £32m, respectively.

Revolution Beauty stated that the 2025 financial year was "transformational", as it discontinued stock keeping units to create a "scalable and profit foundation for future growth".

In its latest trading update, Revolution Beauty said it welcomed the announcement regarding imports to the USA from China that would be subject to lower tariffs, with 23% of company sales in the 2025 financial year being generated in the US market.

However, in its outlook, the beauty firm said that it had planned for double digit net sales declines to continues in the first quarter, but March and April have been softer than planned due to "performance weakness in pure play digital retailers" and weakened consumer confidence impacting its US performance.

It added that with continued focus on cost and inventory management, it expects the impact of lower sales in the 2026 financial year to be "significantly mitigated".

Investment director at AJ Bell, Russ Mould, stated: "The lipstick effect that thrived during the pandemic has gone out of fashion. Beauty products were ‘pick me up’ treats during the gloom of COVID and sales went bananas.

"Faced with a different kind of uncertain backdrop, one might have thought we’d see a repeat of this sales bonanza, yet Revolution Beauty’s trading update suggests otherwise. US sales have been miserable and it is in the firing line for tariffs as 60% of products sold Stateside are made in China.

"Boohoo’s investment in Revolution Beauty is going up in a puff of smoke as the shares hit a new all-time low. Revolution Beauty is now down 97% from its 2021 IPO price – no amount of concealer will disguise that ugly performance."

---