Highlights

  • FY26 pro forma revenue reached $90.2 million, 29% higher than FY25.
  • Pro forma EBITDA rose 41% to $24.6 million, while statutory net profit was $0.6 million.
  • The business opened 22 stores during FY26, ending with 109 across Australia and New Zealand.
  • Like-for-like revenue grew 9.6%, ahead of the prospectus assumption of 8.1%.
  • Management outlined further store openings and international expansion, with execution risks remaining.

SkinKandy Limited (ASX:SK1) operates specialist piercing services and related jewellery retailing across Australia and New Zealand. Its services-led model combines in-store piercing with sales of jewellery and aftercare products. It reported its first annual results as a listed company on 25 August 2026, with differences between pro forma and statutory earnings.

Store Openings and Comparable Sales

The retailer added 22 stores in FY26, taking the network to 109 at year-end. New locations contributed to overall expansion, while established stores also recorded higher sales: like-for-like revenue increased 9.6% compared with an 8.1% prospectus forecast. SkinKandy (ASX:SK1) subsequently reported four further openings early in FY27, as its network expanded beyond the year-end footprint.

Management has outlined an eventual Australia and New Zealand network of 180 to 210 locations. It has also discussed entering another international market, with initial openings targeted for the second half of FY27. These plans remain subject to execution.

FY26 Financial Performance and Statutory Differences

For FY26, SkinKandy (ASX:SK1) reported pro forma revenue of $90.2 million, an increase of 29% on FY25 and 2% above its prospectus forecast. Pro forma EBITDA reached $24.6 million, 41% higher year on year and 5% above forecast. Pro forma net profit after tax was $9.0 million, also up 41%.

Statutory net profit after tax was $0.6 million, compared with $8.1 million in FY25. The gap between statutory and pro forma profit reflects adjustments associated with the company’s reporting and listing arrangements. The company also reported a gross margin of approximately 89% and a decline in its cost-of-doing-business ratio from 65% to 62% of revenue, illustrating the different drivers of earnings.

At year-end, SkinKandy (ASX:SK1) reported $13.8 million in net cash and no drawn debt. Expansion will still require resources. The company’s operating and statutory cash flows remain relevant alongside pro forma earnings.

Expansion Plans and Key Uncertainties

Early FY27 trading showed revenue 22% above the prior comparable period, according to the company’s results update. That short initial period does not establish full-year performance. SkinKandy (ASX:SK1) must continue securing suitable retail sites and recruiting and training piercing staff while maintaining service standards as store numbers rise. Customer demand for discretionary jewellery and services may also respond to household spending conditions.

An overseas launch adds market-specific operating, regulatory and consumer-demand uncertainty. Comparisons between pro forma and statutory results will remain important in judging whether future reported earnings reflect the operating improvements described in management’s FY26 presentation.

Key Insights

SkinKandy (ASX:SK1) reported growth in store numbers, like-for-like sales and pro forma earnings in FY26, alongside lower statutory net profit. Its future disclosures can clarify how continuing store expansion influences costs, cash generation and reported earnings. The FY26 results also establish a financial baseline for assessing management’s longer-term domestic network ambition and planned overseas entry without assuming those targets will be achieved.