Adore Beauty Revenue Jumps

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By Published On: February 26, 20240 Comments

Adore Beauty has released its first half results, with the online beauty retailer reporting a strong start to FY24.

Adore Beauty has reported 1H FY24 revenue has jumped 7 percent up to $100.7 million. Returning customers made up the majority of sales, representing 81 percent. Returning customers totalled a record 507k, up 5 percent on last year, and up 22 percent on a three-year CAGR. 

Overall active customers increased just 0.5 percent to 804k. Average Order Value for all active customers increased 4 percent on the PCP to $113.92.

Commenting on the results, CEO Tamalin Morton said, “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.”

Adore Beauty’s mobile app contributed to 26.3 percent of sales, nearing the company’s initial 30 percent revenue target.

Adore Beauty also announced its intention to explore the opportunity to increase brand awareness in a physical store format with brand activations.

Commenting on Adore Beauty’s H1 FY24 performance, CEO Tamalin Morton said, “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. 

“Efficiency has improved across the business through a number of initiatives that we have implemented, including marketing optimisation and operational enhancements.

“We have reduced our marketing cost as a percentage of sales, even as we have re-invested in an above-the-line brand campaign to support brand awareness. Brand awareness has increased in both our core and broader target demographics.”

So far in the first six weeks of H2, trading momentum continues for Adore Beauty with revenue up 8.1 percent on PCP as it continues to progress on its refined strategy.

“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.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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