boohoo and Revolution Beauty agree beauty and fragrance licensing deal

boohoo group PLC and Revolution Beauty Group PLC on Monday announced a new licensing partnership to develop beauty and fragrance products across Debenhams Group brands.

boohoo, which trades as Debenhams, is Manchester, England-based online fashion retailer. Revolution Beauty is a London-based cosmetics retailer.

They said the first collections are expected to launch ahead of Christmas and will include fragrance and gifting ranges for PrettyLittleThing, Karen Millen and boohooMan.

Further beauty and fragrance launches are planned across other brands, the two companies said.

Shares in boohoo were up 2.1% to 24.00 pence each in London on Monday, and Revolution Beauty was up 6.2% to 4.94p.

Boohoo Chief Executive Officer Dan Finley said: ‘We have been clear that we see significant global licensing opportunities for our brands, and this agreement with Revolution Beauty is a direct expression of our asset-lite strategy in action.’

Finley said beauty is one of the ‘most compelling category opportunities available to us’, and Revolution Beauty has the ‘capability and relationships to bring tailored collections to market across the full portfolio.’

The agreement is structured as a royalty-based license, where Revolution Beauty assumes responsibility for product development, manufacturing and distribution and will pay an ‘industry-standard royalty’ to Debenhams.

Revolution Beauty Chief Executive Tom Allsworth said the business is already at an ‘advanced stage’ in developing fragrance products that will launch nationally and internationally through a number of retail partners.

‘The early reaction to the concepts we have tested has been exceptionally positive,’ he added.

‘By combining the strength of Debenhams group’s brands with Revolution’s expertise, we believe these licences can become a significant growth opportunity for both businesses,’ the CEO continued.

Last week boohoo reported a return to growth in the first quarter of its financial year, boosted by strong trading across Debenhams and PrettyLittleThing.

Gross merchandise value rose 0.5% year-on-year in the financial first quarter that ended May 31. May trading was ‘particularly strong’ with GMV growth accelerating to around 8%.

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