Adore Beauty FY26 slides: record revenue, profit dips on store push

Adore Beauty announced its fiscal year 26 (FY26) results on August 24, 2026, showcasing a year of substantial change as the Australian beauty retailer transitioned from an online-focused model to an omnichannel approach. The company reported record revenue of $207.3 million, a 4.3% increase year-over-year, but underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 39.3% to $3.8 million due to heavy investments in infrastructure and a relatively immature store network.

Management characterized FY26 as the most significant investment cycle in the company's 26-year history, with 13 new retail stores opened, a semi-automated national distribution center commissioned, and a new ERP system rollout completed amidst a challenging trading environment. Revenue growth of 4.3% was driven by a 490% surge in in-store revenue to $18.6 million, while gross profit margin compressed 52 basis points to 34.8%, and underlying EBITDA of $3.8 million translated to just 1.8% margin.

The company's strategic transformation included opening 13 new stores, achieving best-in-class marketing efficiency by reducing customer acquisition costs by 37.4% to $37.3, and increasing operational efficiency despite a challenging market environment. Despite profitability pressures, the retail channel's omnichannel strategy demonstrated its value, with new customer growth accelerating and in-store traffic and conversion rates improving.