Adore Beauty thrives with 7.4% revenue jump and strong customer growth
Leading online retailer Adore Beauty (ASX: ABY) is looking good after a strong jump in earnings.
The company recorded a 7.4% increase in annual revenue compared to the prior corresponding period, reaching $195.7 million.
The improvement came on the back of a record 519,000 returning customers, up 5.8% from the same period in 2023, along with a 1.6% rise in active customers to 814,000.
Customer-focused strategy
Chief executive officer Tamalin Morton said the company’s customer-focused business strategy is paying off.
“Adore Beauty continues to deliver revenue and active customer growth, even as cost-of-living pressures impact consumer sentiment and trading conditions more broadly,” Ms Morton stated.
“Our solid performance over FY24 has reaffirmed the resilience of both our business and the beauty and personal care category.”
“We continue to focus on meeting customer needs while growing both sales and profitability.”
iKOU deal on track
In a busy corporate period, Adore Beauty made a significant move with a binding agreement to acquire 100% of Australian beauty and wellness brand iKOU Holdings for $25m in an all-cash deal.
Ms Morton confirmed that Adore Beauty is on schedule to complete the acquisition on 31 July 2024, as per the announced timeline.
iKOU is a premium Australian brand with established retail and wholesale operations.
Founded in the Blue Mountains, iKOU’s extensive product range includes more than 300 products spanning beauty and wellness categories that are available through its three retail boutiques in the Blue Mountains, Sydney and Byron Bay, as well as via a direct-to-consumer website and wholesale distribution agreements with retail stockists and luxury spas.
CEO search
The company is also making good progress in its plan to appoint a new chief executive officer to replace Ms Morton.
The search is being led by an executive recruitment firm in conjunction with the Adore Beauty board.
Ms Morton will remain in the position until September 2024 and will take up a consulting role providing strategic advice to Adore Beauty beyond that date.