Adore Beauty Group (ABY) H2 2026 earnings summary

Executive summary

• Achieved record revenue of AUD 207.3 million for FY26, up 4.3% year-over-year, driven by omni-channel expansion, new store openings, retail media, and owned brands.

• Opened 13 new retail stores, expanding the network to 20, with five more planned for FY27, and completed a new semi-automated national distribution center and ERP rollout.

• Omnichannel customers represented 9.6% of FY26 revenue, rising to 11.9% in H2, and had 2.5x higher lifetime value than online-only customers.

• Underlying EBITDA was AUD 3.8 million (1.8% margin), down 39% year-over-year but in line with guidance, impacted by higher fixed costs from store network investments.

• Major investments in omni-channel infrastructure, technology, and retail network positioned the group for future growth.

Financial highlights

• Gross margin was 34.8%, down 52 bps year-over-year but up 134 bps from FY24, with H2 margin improving 18 bps.

• Underlying EBITDA margin was 1.8%, down from 3.1% in FY25.

• Marketing and advertising costs declined 22.8% to 8.8% of sales, with customer acquisition costs dropping 37% to AUD 35 per customer.

• Marketing return on ad spend (ROAS) increased to 14x from 9x year-over-year.

• Inventory turnover improved to 6.9x, with inventory down 11.3% on a like-for-like basis.

Outlook and guidance

• Targeting at least 10% revenue growth and underlying EBITDA of AUD 9–13 million for FY27, driven by maturing omni-channel economics and operational efficiencies.

• Full benefit of store network expected in FY27/FY28 as stores mature and operational initiatives ramp up.

• Net debt expected to peak in H1 FY27 before declining as investment cycle completes and EBITDA improves.

• Four new Adore Beauty stores and one new iKOU store to open in H1 FY27, reaching 25 stores.

• Expecting significant operational efficiencies and improved profitability as investments mature and omni-channel strategy gains traction.