Key Highlights

  • Adore Beauty Group Limited (ASX:ABY) shares traded at $0.255 on 21 October 2026, down 8.93%.
  • Adore Beauty’s FY26 results, dated 24 August 2026, show record group revenue of $207.3 million, up 4.3%, and underlying EBITDA of $3.8 million.
  • The company targets FY27 revenue growth of at least 10% and underlying EBITDA of $9 million to $13 million on a pre-AASB 16 basis.

Adore Beauty Group Limited (ASX:ABY) shares fell 8.93% to trade at $0.255 during the trading session on 21 October 2026, while the S&P/ASX 200 (XJO) stood at 8,809.20, down 7.70 points or 0.087%. Adore Beauty’s latest ASX announcement, dated 24 August 2026, reports its results for the 12 months ended 30 June 2026 (FY26).

About Adore Beauty

Adore Beauty Group Limited is an online beauty retailer that has expanded into physical stores and owned brands, including IKOU. It had a national network of 20 stores at the end of FY26, with five more confirmed for calendar 2026.

FY26 financial results

Group revenue was a record $207.3 million, up 4.3%, with an $18.6 million contribution from stores, along with retail media growth and owned brands. Gross margin was 34.8%, down 52 basis points, reflecting first-half performance, with second-half margin 18 basis points ahead of the prior year. Underlying EBITDA was $3.8 million, or 1.8% of revenue, broadly in line with May 2026 guidance.

New customers rose 14.4%, customer acquisition cost spend fell 37.4%, and owned brands grew at double-digit rates to account for 5.8% of group product revenue.

Stores, infrastructure and omnichannel

Adore Beauty opened 13 new stores (11 Adore Beauty and 2 IKOU). It built a new semi-automated National Distribution Centre and completed an ERP rollout on budget and schedule, with efficiency gains expected from Q2 FY27. Omnichannel customers contributed 9.6% of group revenue, rising from 5.1% in the first half to 11.9% in the second half, and have a customer lifetime value about 2.5 times that of single-channel customers.

The company refinanced and increased its working capital facility with CBA to $17 million.

FY27 targets

Adore Beauty reaffirmed FY27 group revenue growth of at least 10% and underlying EBITDA of $9 million to $13 million. It said the FY26 investment cycle and a challenging retail environment weighed on earnings.

Adore Beauty described omnichannel customers as its most valuable cohort, with lifetime value 3.4 times higher for customers who make their first purchase in-store. More than half of the store network is less than a year old, and the new National Distribution Centre, operational for six weeks at the time of the release, is expected to support efficiency gains from Q2 FY27.

Sector context

Online beauty retail is competitive and sensitive to consumer spending and marketing efficiency. Retailers adding physical stores take on lease and staffing costs, and new store performance matures over time.

Investments in distribution centres and ERP systems are typically capitalised and intended to improve efficiency in later periods.

Risks and uncertainties

Gross margin declined for the full year and underlying EBITDA of $3.8 million was low relative to revenue. The FY27 targets assume sales growth and a step-up in profitability in a retail environment the company described as challenging.

More than half of the store network is less than a year old, so contribution depends on transaction conversion and consumer demand. The working capital facility of $17 million is a funding dependency.

What's next

Adore Beauty plans to open five further stores in calendar 2026 and expects efficiency gains from its new distribution centre from Q2 FY27, while working towards its FY27 targets.