Adore Beauty’s strategy overhaul is already paying off, with the company reporting strong profit growth, record margins, and early success in its retail expansion for the first half of FY25. Revenue edged up 2.3% to $103 million, but the real story is in profitability—EBITDA nearly doubled to $4.7 million, while EBIT surged 126% to $2.8 million, showing that the company’s focus on margin expansion and disciplined cost management is delivering results.
CEO Sacha Laing is thrilled with the momentum. “Our half-year results demonstrate the strength of the Adore Beauty brand and the early success of our strategy refresh. This is just the start as we accelerate our plans, including rolling out new retail stores across Australia.”
From Online-Only to Omnichannel: The Retail Expansion Begins
For 25 years, Adore Beauty has been a pureplay e-commerce leader, but now it’s taking things to the next level with a national retail store rollout. The first Adore Beauty store opened in February at Westfield Southland (VIC), with a second location in Watergardens (VIC) launching in March. The company plans to open 4–6 more stores this year, expanding into Western Australia, New South Wales, and Queensland. Meanwhile, iKOU’s flagship Melbourne store is set to open in April, as the brand expands beyond its New South Wales origins.
This move isn’t just about brick-and-mortar sales—it’s about deeply integrating physical stores with Adore Beauty’s powerful digital ecosystem. The goal is to create an immersive shopping experience, leveraging the company’s 14,000+ product range, mobile app, AI-driven personalization, and loyalty programs.
Boosting Margins with Owned Brands and Retail Media
A key part of Adore Beauty’s profitability push is growing its high-margin owned brands and expanding its retail media business. With record gross margins of 36.2% (up 270 basis points from last year), the company is proving that strategic tweaks can deliver serious bottom-line benefits.
Adore Beauty has invested in a dedicated team and technology platform to accelerate retail media growth—an increasingly lucrative revenue stream. Meanwhile, the owned brand portfolio will see expansion through retail, direct-to-consumer, and wholesale partnerships in new regions.
Financial Strength to Support Expansion
Despite investing $20 million in the iKOU acquisition and funding the initial retail store rollout, Adore Beauty remains in a strong financial position. The company closed the half with $11.7 million in cash, zero debt, and positive cash flow, ensuring it’s well-funded to accelerate its growth strategy.
Looking ahead, Adore Beauty reaffirmed its FY25 guidance, expecting EBITDA margins of 4–5% and EBIT margins of 2–3%. With retail expansion in full swing, owned brands gaining traction, and a disciplined approach to profitability, the company is on track to achieve its ambitious three-year goal of 30% revenue growth and doubled EBIT margins.
For investors, the message is clear—Adore Beauty isn’t just growing, it’s becoming more profitable and efficient, setting the stage for sustained long-term success.
