The rise of online beauty treatments has reignited sales at Adore Beauty, which is using the pandemic-inspired demand to take advantage of the $11 billion market.
Adore Beauty’s sales grew by 26 per cent in July & August, after slowing to a 3 per cent clip in the June quarter. The company attributed the strong sales performance to the impact of the pandemic on demand.
The closures of several beauty retailers across Australia in July and August caused more consumers to head back to online for their beauty needs.
With sales expected to reach $200 million by 2022, analysts believe Adore‘s sales will surpass those of its predecessor company.
Instead of banking on the extra revenue, co-founders Kate Morris and Tennealle O’Shaughnessy plan to heavily invest in increasing brand awareness and customer loyalty.
As a result, the EBITDA margins are expected to fall to around 2 to 4 per cent in the short term, from 4.2 to 4.1 per cent in 2021.
After reporting a net profit of $845,000 in 2020, Wesfarmers’ annual profit rose to $845,000, but fell short of market expectations.
Revenue at the company rose 48 per cent to $179.3 million in 2018, exceeding the guidance of around 43 per cent to 47 per cent.
The number of active customers rose by 39 per cent in the year ended June 2017. However, the growth rate slowed to about 5 per cent during the June half.
In the half year, the company launched a mobile app and a customer loyalty program. It also launched a private label accessories range.
The company plans to launch a skincare range in 2022 and also test a range of beauty products aimed at men.
If you’re looking to shop at Adore Beauty, use an Adore Beauty coupon to save on your purchase.
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