Cost-of-living starts to bite, but Adore Beauty continues to grow

Harry Booth

26th May 2026

Adore Beauty is continuing to draw in new customers and grow its sales, but the company’s CEO has acknowledged that cost-of-living pressures are starting to bite.

The online-first retailer acknowledged that its “overperformance” during Black Friday before Christmas hurt its profit margins. In the following quarter, that heightened promotional activity hasn’t abated. 

“More pronounced cost-of-living pressures have seen an increase in promotional activity in the market through April and May, resulting in a tempered slowdown in trading in Q4,” CEO Sacha Laing said.

In the first 47 weeks of its fiscal year, Adore said it has recorded $193.4 million in revenue, up 7.4 per cent on the previous year. This increasing revenue joins a surging customer base, which is up 13.9 per cent in the same timeframe.

“Store performance is in line with expectations, with our retail network continuing to cost-effectively introduce new customers to the Adore Beauty brand, increase revenues, and support our online channel through new customer acquisition,” Laing added. 

In February, Adore said that its loyalty members – of which there are more than half a million – accounted for 78 per cent of its sales.

Its fiscal second-half has also brought the opening of three new stores, bringing the groupwide total count to 20.

“In addition, we have recently reshaped our head office team, delivering over $2.5 million in cost efficiencies on an annualised basis,” Laing said.

“The group will open a further four Adore Beauty stores and one Ikou store during the first half of 2027, bringing the total network to 25 locations nationally. 

“We believe, whilst there is uncertainty in external market conditions, our FY27 targets appropriately consider the external economic conditions at this time.”

These fiscal 2027 targets include an expected revenue growth of 10 per cent, and an underlying EBITDA between $9 million and $13 million.