Revolution Beauty (REVB:AIM) 84.2p

Loss to date: 47.4%

Original entry point: Buy at 160p, 9 September 2021

Despite the company in question not really doing anything wrong in terms of execution our buy call on Revolution Beauty (REVB:AIM) has been badly beaten up.

In hindsight we might have cut our losses when we last commented on the shares in February though obviously we didn’t know the war with Ukraine was coming. The conflict has helped exacerbate cost of living pressures and put consumer-facing stocks like Revolution Beauty on the back foot.

Global cosmetics brand Revlon (REV:NYSE) entering Chapter 11 bankruptcy is a reminder of the pressures on the wider industry, particularly when it comes to supply chains. Though its troubles are partly a function of its heavy borrowings too.

Revolution Beauty, which looks to bring quality, cruelty-free cosmetics and skincare products to market fast, recently updated investors on its full-year performance. In the 12 months to 28 February 2022, admittedly not encompassing the period since the Ukrainian invasion, the company reported revenue up 42% year-on-year to £194 million.

SHARES SAYS: Historically cosmetics spend has proved fairly resilient in a downturn and Revolution Beauty has done nothing to lose our faith. Stick with the shares. 

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