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Australia’s Adore Beauty Sees Surge in Revenue, Eyes First Physical Store

Women's Tabloid News Desk
Women's Tabloid News Desk

Key Highlights:

  • Adore Beauty Group reports a 7% revenue increase to $100.7 million in the fiscal first half, driven by a record number of returning customers.
  • CEO Tamalin Morton underscores the company’s intention to explore the creation of its first physical store to enhance brand awareness.
  • Adore Beauty’s mobile app contributes significantly to sales, comprising 26.3% of total revenue, as the company aims for further growth amid a challenging retail landscape.

Adore Beauty Group is setting its sights on its inaugural physical store following a surge in revenue during the fiscal first half, driven by a notable increase in returning customers and heightened activity among its customer base.

The online cosmetics retailer reported a 7 percent rise in revenue to $100.7 million for the first half of FY24. Returning customers, comprising 81 percent of sales, reached a record 507,000, marking a 5 percent uptick from the previous year and a notable 22 percent increase on a three-year compounded annual growth rate. Meanwhile, active customers saw a modest 0.5 percent increase to 804,000. The average order value for all active customers rose by 4 percent to $113.92 compared to the prior corresponding period.

CEO Tamalin Morton underscored the company’s efforts in retaining its valuable customer base, with retention climbing by 8.4 percentage points to 63.3 percent during the period. She emphasized, “We continue to retain more of this valuable customer base, with retention increasing 8.4 percentage points over the prior year, to 63.3 percent during the period.”

The company’s mobile app contributed to 26.3 percent of sales, nearing its initial target of 30 percent revenue. Adore Beauty also revealed plans to explore the potential for enhancing brand awareness through physical store formats with brand activations.

Reflecting on the company’s performance in the first half of FY24, CEO Tamalin Morton highlighted, “Adore Beauty has had a solid start to FY24, delivering growth across key metrics as we continue to build momentum in a challenging retail environment. Our performance reflects the impact of our proposition.”

Morton noted improvements in efficiency across the business through various initiatives, including marketing optimization and operational enhancements. Despite reducing marketing costs as a percentage of sales, the company invested in above-the-line brand campaigns to bolster brand awareness, resulting in increased awareness in both core and broader target demographics.

Looking ahead, Adore Beauty remains optimistic about its future growth trajectory, with trading momentum continuing in the first six weeks of H2. Revenue is up 8.1 percent compared to the prior corresponding period as the company progresses on its refined strategy.

Morton emphasized, “Adore Beauty’s refined strategy will drive future growth, as the category benefits from the long-term shift to e-commerce. Our strategic initiatives continue to mature, and we remain focused on being at the forefront of the evolving customer and competitive landscape. Our brand and product portfolio continues to expand, focused on growing our range including trending, luxury, and owned brand offerings. We have also enhanced our proposition with a new subscription service and are leveraging technology to drive app adoption.”

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