Adore Beauty Targets Doubled FY27 EBITDA after Strong FY26 Trading

Adore Beauty lifts FY27 EBITDA target to $9-13m (vs ~$4m FY26) on ~10% revenue growth, with NDC savings and store expansion underpinning the upgrade.

IC
Isla Campbell
·1 min read
Adore Beauty Targets Doubled FY27 EBITDA after Strong FY26 Trading

Key points

  • FY27 EBITDA targeted at $9-13M on revenue growth.

  • Significant cost savings from NDC and head office reshaping.

  • Network expansion and technology upgrades key to future performance.

Adore Beauty (ASX: ABY) has reported its year-to-date trading performance for the 47 weeks ending 24 May 2026, revealing revenue growth of 7.4% to $193.4 million.

New customer acquisition demonstrated robust momentum, increasing by 13.9% year-to-date compared to the prior corresponding period.

The company has guided that its full-year FY26 underlying EBITDA is expected to be approximately $4.0 million.

Furthermore, the H2 FY26 gross margin is anticipated to remain stable, matching the prior year at 34.5%.

Ambitious FY27 Targets Set

Looking ahead, Adore Beauty has set ambitious targets for FY27, aiming for at least 10% revenue growth.

Underlying EBITDA for FY27 is guided significantly higher, projected to be between $9-13 million.

This substantial EBITDA uplift is expected to be supported by approximately $2.0 million in annualised labour cost savings from the new National Distribution Centre (NDC).

Adore is also anticipating more than $2.5 million in annualised cost efficiencies from head office reshaping efforts.

Omni-Channel and Operational Investments

In H2 FY26, Adore Beauty opened three new stores in Kotara NSW, Parramatta NSW, and Robina QLD, expanding its total store network to 20 locations, comprising 14 Adore Beauty stores and six iKOU stores.

Continuing its retail expansion, the company plans to open a further five stores in H1 FY27 consisting of four Adore Beauty stores and one iKOU store.

Key technology investments are progressing, with the ERP transition expected to complete in the coming weeks.

The new NDC commissioning remains on track for Q1 FY27, a critical step in enhancing operational efficiency.

Previous Growth & Investments

Adore Beauty has been actively investing in its omni-channel strategy.

Its H1 FY26 results saw revenue growth of 8.7% to $111.9 million and underlying EBITDA growth of 14.5%.

A previous focus on marketing efficiency led to a 56% reduction in customer acquisition costs to $33.

A new 6,300sqm National Fulfilment Centre in Broadmeadows, Victoria secured with an initial capital outlay of approximately $8 million is expected to be operational in Q1 FY27.

Investment in ERP systems and AI capabilities was also underway to drive operational efficiencies and improve customer experience.

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