Adore Beauty 47-week revenue up 7.4% to A$193.4m in FY26 update

Adore Beauty Group (ASX: ABY) reported that revenue for the first 47 weeks of FY26, ending 24 May, rose 7.4% year-on-year to A$193.4 million, citing continued customer engagement across digital and physical channels.

The company said year-to-date new customer acquisition increased 13.9% versus the prior corresponding period, while noting trading momentum moderated in April and May amid higher promotional activity and cost-of-living pressures affecting discretionary spending. Management expects second-half gross margin to remain broadly in line with the prior year at around 34.5%.

Market reaction was positive on the update, with Adore Beauty shares showing intraday gains as investors welcomed the top-line growth and stronger customer metrics despite softer end-market conditions. Short-term volatility may persist as the market prices ongoing promotional intensity across the retail sector.

The trading update highlighted the role of the company’s omni-channel strategy and recent operational investments. Adore Beauty has expanded its store network and is progressing a National Distribution Centre and ERP transition intended to lower logistics and labour costs and improve fulfilment efficiency. These initiatives are expected to contribute to margin stability and future earnings improvement.

Looking ahead, management set FY27 targets of at least 10% revenue growth and underlying EBITDA in the A$9–13 million range, reflecting confidence that completed investments and targeted cost efficiencies will lift profitability. Key near-term catalysts for investors will include the commissioning of the distribution centre, execution of store rollouts and confirmation of H2 results against guidance.