ASX-listed Adore Beauty on track to open more than | Australian Markets

Cult online magnificence retailer Adore Magnificence is on monitor to roll out more than 25 new brick-and-mortar shops throughout Australia because it strikes to lock in a “step change” in its business and lively buyer base.

The ASX-listed company opened its first store in Melbourne’s Westfield Southland purchasing centre earlier this month, marking its first foray into bodily retail after 25 years as an online expertise.

In its latest earnings report on Monday, the retailer confirmed it could open a second store in Melbourne in March on the Watergardens purchasing centre after which one other 4 to 6 shops throughout 2025.

By subsequent 12 months, the company expects to boast a bodily presence in Victoria, NSW, Queensland and WA, placing it in direct competitors with retailers like Mecca and Sephora.

“The company will establish a national retail store network of more than 25 stores across its Adore Beauty and iKOU brands, materially broadening its addressable market within the $13.9bn Australian beauty industry,” the company acknowledged in its half-year outcomes for the six-months to December 31, 2024.

“The stores will be deeply integrated with the online digital ecosystem and infrastructure leveraging Adore Beauty’s well established brand position to increase brand advocacy, awareness and new customer acquisition, and deliver significant incremental sales.”

The retailer presents consumers some 300 manufacturers and 14,000 merchandise on its online platform and pulls collectively product info, evaluations and podcasts to curate an expertise that has constructed up a cult following.

It is usually famend for offering prospects a free Tim Tam on every buy.

Crowds of loyal prospects queued up from 5am at Westfield Southland on February 1 to be the primary to enter the store when it opened at 9am.

On Monday, the company reported 20 per cent growth in complete contactable prospects to 1.26 million from the prior 12 months and 4 per cent growth in lively prospects to 837,000.

Revenues reached $103m, a 2.3 per cent leap from 2024, whereas internet income after tax fell from $1m to $600,000.

Adore’s three-year strategy targets complete group income to hit $260m and lively prospects to surpass 1.25 million.

The company had $11.7m money readily available at December 31, down from $32.9m at June 30, 2024, which the company credited to a $20m upfront consideration for the acquisition of iKOU, accomplished over the period, and the initial capital outlay for the company’s first retail shops.

Adore Magnificence CEO Sacha Laing stated the new shops had been a “natural extension” of the company online ecosystem.

“With 25 years as Australia’s leading pureplay beauty authority our retail stores will be a natural extension of our online ecosystem with a deeply connected and immersive digital customer experience in-store,” he stated on Monday.

“We remain focused on continued expansion of gross margins through growth of our owned brands, further growth of retail media, refined promotional cadence and disciplined inventory management.

“Our digitally enabled omni-channel model empowers our customers to shop out 14,000 products whenever and however they choose – either in-store, online or a mixture of the two.”

Inventory within the company lifted 0.6 per cent over the trading day to settle at 84c for a market capitalisation of $78.92m.