Revolution Beauty Group plc delivered a revenue beat and an earnings upgrade in a trading update today, suggesting vindication for the non-violent boardroom coup enacted by major shareholder Boohoo Group PLC (AIM:BOO) in 2023.
Boohoo forced an executive shakeout last year, which came to an end with former chief legal officer Elizabeth Lake’s resignation in December.
Lake’s resignation followed earlier exits of chairman Derek Zissman and chief executive Bob Holt.
Former Walgreens exec Lauren Brindley was brought in as the new boss, with Boohoo deputy Alistair McGeorge becoming non-executive chair.
In today’s update, management upped full-year adjusted EBITDA guidance to at least £12.5 million, from £11-£12 million prior.
Brindley stated: “It is early days, but we are already seeing positive impacts from the new strategy, including an encouraging response from our major customers and good progress on our cost savings programme.
“Our focus on driving sales from our more profitable brands is starting to deliver, with double-digit growth in sales of our core ‘Revolution’ master brand versus the second half of FY 2023.”
Commenting on this update, Liberum analysts said: “We are encouraged that the new strategy should bring renewed energy and service levels to its global retail and distribution partners which is key to driving long-term sustainable growth.
“There is truly huge upside in both forecasts and share price.”
On that note, analysts gave the stock a 'buy' rating while upgrading its price target from 70p to 75p. Shares added 9% to 29.9p on Wednesday.