Adore Beauty credits customer loyalty for strong sales growth


Pureplay online cosmetics retailer Adore Beauty says returning customers contributed 70 per cent of sales coupled with a higher than average spend last year.

In its results for the year to June 30, revenue increased by 11 per cent to $200 million while gross profit rose 12 per cent to $66.5 million. EBITA was $5.3 million which the company said was in line with guidance and reflected reinvestment in the business.

The active customer base increased 7 per cent to 872,000 with sales through the company’s loyalty program and mobile app contributed 60 per cent and 11 per cent of total revenue respectively.

Sales of its Viviology skincare brand – which launched in June this year – exceeded “internal expectations” while the fragrance and Korean beauty categories accounted for 4.1 per cent and 2.5 per cent of total revenue respectively.

Company CEO Tennealle O’Shannessy said the higher proportion of returning customers highlights the future potential for the brand’s business.

“Our investments in strategic priorities are contributing to improved customer retention and lifetime value, and will drive sustainable, long-term growth as online adoption in Australia’s beauty and personal care market catches up to the UK, the US and China.”

The company is implementing cost control measures to manage inflationary pressures while also doubling its investment in its owned brands to scale expansion. It is set to launch its second private label offer later this year.



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