Online cosmetics retailer Adore Beauty to expand private label range
Online beauty and cosmetics retailer Adore Beauty has confirmed it expects to emerge profitable from fiscal 2023 despite a 29 per cent slide in first quarter revenue.
Online beauty and cosmetics retailer Adore Beauty has confirmed it expects to emerge profitable from fiscal 2023 despite a 29 per cent slide in first quarter revenue to $45.4m, as the end of lockdowns saw shoppers pivot from online shopping to going back to the stores.
In her presentation to shareholders at the online retailer’s annual general meeting on Monday, CEO Tennealle O’Shannessy said the business was experiencing strong growth in returning customers, up 14 per cent on the same time last year, and up 85 per cent on a two-year basis.
Ms O’Shannessy, who announced in August she will soon step down from Adore Beauty to take up a new role as CEO of ASX-listed IDP Education, said the cosmetics retailer’s number of active customers was 791,000, down 9 per cent on last year but up 12 per cent on a two-year basis.
She told investors the company was expecting a return to double-digit revenue growth in the second half, and the company reaffirmed that it expects to remain profitable on a full-year basis in 2023. It also expects to return to a 2-4 per cent EBITDA margin range for the full year in 2024.
Ms O’Shannessy said Adore Beauty was also growing its portfolio of own brands, or private label brands, with an initial range to feature two-skincare based sunscreen products and another private label range to be launched in 2023.
Ms O’Shannessy was only appointed the boss of Adore Beauty in August 2020 in the lead-up to its $270m sharemarket float in October that year, when the hyped-up private equity-backed IPO sold shares to the public at $6.75 each.
But the stock has failed to trade above that price since and has fallen 57 per cent since the start of the year.
Adore Beauty has struggled with a slowdown following a boom in online shopping through Covid-19 lockdowns in 2020 and 2021.
The company posted a full year profit of $2.38m for fiscal 2022, up 181 per cent, as revenue lifted 11 per cent to $199.66m.
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