Revolution Beauty, the popular cosmetics brand founded over a decade ago by Adam Minto and Tom Allsworth, is set to undergo significant changes following the failure of a planned sale. The brewing company is projecting a 50% drop in pandemic-related sales losses. It announced a huge pre-tax loss of £16.8 million, from an £11.4 million profit last time. Minto and Allsworth will be returning to the company in leadership roles. First, as part of a strategic reset, they will address the urgent fiscal matters.
Sales have been nothing short of cataclysmic, with Revolution Beauty down 25.5 percent in their most recent financial year. In fact revenues reached £142.6 million for the 12 months to February 28. Today, the company’s products are available in big box retailers such as Superdrug and Boots. Or visit the largest online fashion platforms to find them, like ASOS. Digital darling Revolution Beauty often boasts of its social media savvy. They partner with TikTok influencers as well as a handful of former contestants on the reality dating show juggernaut Love Island.
Facing the cost of its financial woes, Revolution Beauty has so far promised at least £10m in additional savings, which will include layoffs. These closures are expected to save the company another £7.5 million by 2027. Minto and Allsworth to the leadership positions once again. This decision comes after their resignations amidst a wave of accounting scandals that plagued the company.
Tom Allsworth will resume his position as chief executive. In related news, Adam Minto will move to a consultancy role with TfL, with an annual salary of £160,000. Their comeback is universally viewed as a make or break move to help win back lost confidence in the brand and reenergize sales.
“They are the people that essentially scaled up the business and made it the success it was.” – Jonathan De Mello
Iain McDonald, acting CEO of Revolution Beauty, welcomed the return of the founding duo. He stated, “We are confident that with a return to the founder-led management team who originally scaled the brand, there is a clear path back to growth and long-term value creation.”
Revolution Beauty’s long-term success is on the heels of its founders’ talents. They should be just as skilled at steering through these choppy waters and returning the firm to rosy earnings. As they dive into this endeavor stakeholders will closely monitor their strategies. Customers will be watching intently to see how all of this plays out over the next several months.