Company Interview / Is Adore Beauty in for a FY26 makeover?

Key points:

Adore Beauty (ASX:ABY) records improved EBITDA and revenue despite lower profit Expansion of physical stores in response to 87% of beauty market being in-store Revenue target set at $260 million by FY27, 30% above FY24 Focus on profitable growth, new customer acquisition, and wellness segment expansion

Sacha Laing of Adore Beauty highlights a transformative year for the company (ASX:ABY), with strong growth indicators despite statutory profit dropping 56% to $1.23 million. Laing points to a record EBITDA of $8.1 million, an increase of nearly 68%, and a revenue rise to just under $199 million. He notes that Adore Beauty, traditionally an online retailer, now operates five physical stores and has seen a 4.9% growth in new customers over the last half year. Early signs for the next financial year are promising, with sales in the first seven weeks up 9%.

Laing states that 87% of the beauty market’s addressable segment remains in physical stores, presenting significant growth opportunities as Adore Beauty aggressively expands its bricks-and-mortar footprint. The company aims to open an additional 12 to 14 stores this year, targeting a revenue goal of $260 million by FY27, representing a 30% increase from FY24. The company recently expanded further into wellness, opening flagship stores and spas under the eco organic beauty brand, following a $25 million acquisition.

Shareholders are told that while no dividend will be paid this year, investor support remains strong for Adore Beauty’s omnichannel strategy. Laing points out that industry resilience and tangible customer experiences continue to drive demand for physical retail in beauty.