'Challenging' markets hit sales at Warpaint, shares slump

23rd Sep 2026 15:23

(Sharecast News) - Shares in Warpaint London tumbled on Wednesday, after the make-up and beauty brand saw interim profits slide and warned that full-year revenues would likely come in at the lower end of its guidance range.

The Aim-listed firm, which owns Barry M, W7 and Technic, among others, posted a 17.8% slide in revenues in the six months to 30 June, to £40.5m, while pre-tax profits slumped 36.4% at £6.8m.

Sam Bazini, chief executive, called the period "undoubtedly challenging, with pressure on consumer spending and cautious retailer ordering across many of our markets.

"Across this backdrop, we have remained focused on the areas within our control and I am pleased that we have continued to improved gross margin, generate strong cashflow and position the group for future growth."

The gross profit margin soared 230 basis points to 47.3% on the back of a new group sourcing strategy as well as a one-off 150bps contribution from selling through Barry M inventory acquired at a discount. Warpaint bought the nail polish brand in February this year.

Bazini also pointed to positive trading in the third quarter, with sales in the nine months to 30 September on track to come in around £69m, down £5m on the same period a year earlier.

He continued: "As we have previously indicated, we expect 2026 to be significantly more second-half weighted that in prior years. We have considerably more Christmas gifting activity planned, alongside further customer and store expansion and a contribution from the Barry M brand."

However, the company acknowledged that while it was on track to meet market expectations for adjusted earnings before interest, tax, depreciation and amortisation in the full year, it now expected revenues to come at the lower end of market expectations.

Consensus is currently for adjusted full-year EBITDA of between £22.4m and £24m, and revenues between £103.3m and £112.6m.

As at 1600 BST, the stock had tumbled 13% at 194p.

Shore Capital said: "Times are tough, but Warpaint has a strong balance sheet, net cash of £20.7m at the half year and a 6% increase in the interim dividend per share demonstrates confidence over the medium term."

Shore Capital is Warpaint's nominated adviser and joint broker.

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