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magazineRevolution Beauty can still dazzle despite tough start on the market
REVOLUTION BEAUTY (REVB:AIM) 128.5p
Loss to date: 19.7%
Original entry point: Buy at 160p, 9 September 2021
Our bullish call on Revolution Beauty (REVB:AIM) is almost 20% in the red, yet we are sticking with the make-up, skincare and haircare brand for its global growth potential.
We believe Revolution Beauty will capitalise on a buoyant mass beauty market once the pandemic recedes.
News since Revolution Beauty’s July 2021 IPO has been positive, with the company continuing to expand distribution with retailers and the online business growing.
However, concerns over Omicron, cost pressures and supply chain disruption have weighed on sentiment. And Revolution Beauty, which reported a widened first half loss after IPO-related costs, has been caught up in the rotation away from high potential growth stocks towards profitable value names.
Encouragingly, the shares rallied following a positive Christmas trading update (26 Jan) which highlighted 41% sales growth over the peak months of November and December, despite many of Revolution’s markets going into lockdown.
Revolution Beauty also confirmed major new distribution wins with Walgreens in the US and Boots in the UK.
SHARES SAYS: Revolution Beauty’s share of the growing global mass beauty market remains small, so there’s an enormous opportunity in front of the business. Keep buying.
Important information:
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Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Danni Hewson
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