Key Highlights

  • Revenue rose 7.4% to AUD 193.4 million during the first 47 weeks of FY26.
  • First-half revenue increased 8.7% to AUD 111.9 million and underlying EBITDA rose 14.5% to AUD 4.1 million.
  • The store network reached about 20 locations, with 25 targeted during the first half of FY27.
  • Adore targeted at least 10% FY27 revenue growth and underlying EBITDA of AUD 9–13 million.

Adore Beauty Group (ASX:ABY) is reshaping its online beauty model through physical stores, higher-margin own brands and a lower cost base. Revenue continues to grow, but thin profitability and heavier promotional activity mean the FY27 targets will be the clearest test of the turnaround.

From Online Pure-Play to Omnichannel Retailer

Adore Beauty carries more than 300 brands across skincare, cosmetics, haircare and fragrance. Its newer strategy adds physical stores and own brands, led by the iKOU wellness label acquired in 2024.

FY26 Trading Shows Growth and Margin Pressure

Revenue for the first 47 weeks of FY26 increased 7.4% to AUD 193.4 million. Management expected second-half gross margin near 34.5% as promotional competition intensified.

For the 26 weeks ended 28 December 2025, revenue rose 8.7% to AUD 111.9 million and underlying EBITDA increased 14.5% to AUD 4.1 million. Gross profit reached AUD 39.2 million, while gross margin eased to 35.0%.

Active customers increased 4.7% to about 850,400, and new-customer acquisition rose almost 22%.

Stores and Cost Savings Shape FY27

The group had around 20 Adore Beauty and iKOU locations by late May 2026 and planned to reach 25 during the first half of FY27.

Management identified approximately AUD 2 million of annualised distribution-centre savings and more than AUD 2.5 million from head-office restructuring. A robotics-enabled fulfilment centre is planned for FY27.

The Earnings Target Raises the Bar

Adore targeted FY27 revenue growth of at least 10% and underlying EBITDA of AUD 9–13 million. These ambitions compare with expected FY26 underlying EBITDA near AUD 4 million.

What May Be Watched Next

Full-year cash, store productivity, own-brand mix, gross margin and delivery of cost savings may show whether the model is gaining operating leverage.

Key Risks

Margins remain narrow, promotional competition is intense and the store rollout adds fixed costs. Consumer weakness, execution delays and failure to reach the FY27 targets could pressure available cash and sentiment.

What does Adore Beauty sell?

It sells skincare, cosmetics, haircare, fragrance and wellness products online and through stores.

What was first-half FY26 EBITDA?

Underlying EBITDA was AUD 4.1 million.

How many stores is Adore targeting?

It planned to reach 25 locations during the first half of FY27.

What is the FY27 EBITDA target?

Management targeted underlying EBITDA of AUD 9–13 million.