Adore Beauty to open two stores to compliment online presence
Starting its life as a pureplay online cosmetics retailer, the business is now going old-school with brick and mortar stores to grow brand awareness.
Listed cosmetics company Adore Beauty will pivot from its strong presence online to open brick and mortar stores in the nation’s shopping centres to further grow its brand awareness.
The specialist online retailer already says it has signed two leases for stores which will open later this year, one in Victoria and one in Queensland, as the company, which enjoyed boomtime conditions through Covid-19 lockdowns rakes in more returning customers to its online portal.
On Monday Adore Beauty, which listed on the ASX in late 2020, posted a 7 per cent gain in full-year revenue to $195.72m as net profit rocketed 489 per cent to $2.18m. No dividend was declared.
It has been a difficult few years for Adore Beauty following the fading of the Covid-19 boom, when locked-in shoppers bought candles, makeup and beauty products, with its shares down more than 80 per cent since its listing but up 16 per cent in the last 12 months.
The company said reported earnings of $4.8m were up 661 per cent and its margin of 2.5 per cent was in line with guidance.
It record 519,000 returning customers, up 5.8 per cent, with active customers of 814,000, an increase of 1.6 per cent.
“Delighting our customers remains our top priority. We’re seeing the benefits of our customer centric strategy, with retention improving 8.5 percentage points over the year to 64.7 per cent,” said chief executive Tamalin Morton.
“Investment in brand and above-the-line marketing is strongly driving awareness of Adore Beauty, achieving a record 71 per cent in our target audience — up from 62 per cent last year.
“We are also continuing to expand our product range — now with over 300 brands — to ensure we have a compelling beauty and wellness proposition for our customers.”
Adore Beauty is also developing a new retail media arm which has already snared $4m in revenue for 2024.
A trading update which showed sales in the first seven weeks of 2025 were up 7 per cent was seen as below market expectations and disappointed analysts.
ABY shares traded 5.5 per cent higher on Monday, to $1.16.
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