Adore Beauty Group eyes first physical store as revenue surges

Celene Ignacio

27th Feb 2024

Adore Beauty Group enjoyed higher revenue in the fiscal first half on the back of a record number of returning customers and more active customers.

And the company has engaged a consultant to imagine how the brand could create a physical store.

The cosmetics retailer’s revenue increased 7 per cent to $100.7 million while reported earnings before interest, taxes, depreciation, and amortisation surged 467 per cent to $2.4 million. Gross profit inched higher to 33.5 per cent.

Returning customers rose 5 per cent to 507,000, who accounted for 81 per cent of sales. Active customers climbed 0.5 per cent to 804,000.

During the period, the company added 15 new brands including Prada, Valentino, Ole Henriksen and Viktor & Rolf.

“We have reduced our marketing cost as a percentage of sales, even as we have reinvested in an above-the-line brand campaign to support brand awareness,” said Adore Beauty CEO Tamalin Morton.

“Brand awareness has increased in both our core and broader target demographics. We are also working with a specialist design agency, AKQA, to explore how the Adore Beauty brand can be brought to life in a physical format.”

For the full year, Adore Beauty said it is on track to achieve its 2 per cent to 4 per cent margin target.