Adore Beauty Group (ABY) H1 2026 earnings summary

Executive summary

• Revenue grew 8.7% year-over-year to AUD 111.9M, driven by omnichannel strategy, new store openings, and strong seasonal trading.

• Underlying EBITDA rose 14.5% to AUD 4.1M (pre-AASB 16), with margin of 3.7% and disciplined cost management.

• New customer growth accelerated by 21.8% year-over-year, with loyalty program members contributing 78% of sales.

• Opened 10 new retail stores in H1 FY26, expanding omni-channel presence and supporting customer growth.

• No dividends were paid, recommended, or declared during the period.

Financial highlights

• Gross margin was 35.0%, down 120bps year-over-year due to promotional intensity, but gross profit rose to AUD 39.2M.

• Statutory EBITDA reached AUD 4.9M; marketing costs reduced by nearly 30%, now 8.6% of sales.

• Operating cash flow remained positive, with closing cash balance at AUD 8.2M after iKOU payment.

• Inventory efficiency improved, with stock turn up 11.7% year-over-year and over 60% of inventory within a 60-day window.

• Basic earnings per share were 0.20 cents, down from 0.67 cents in H1 FY25.

Outlook and guidance

• FY26 underlying group EBITDA margin expected at 3%-4% (pre-AASB 16), or 5%-6% under previous methodology.

• Store network to reach 20 by end of H1 FY26, aiming for 25+ by FY27.

• Targeting 1,250,000 active customers by FY27, with continued focus on loyalty and app growth.

• Continued investment in technology, ERP, and fulfillment center to support growth.

• No update to 2027 EBIT target guidance; further details to be provided at full year results.