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Adore Beauty Group Ltd.
(Sydney:ABY)
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Rating:54Neutral
Price Target:
AU$0.25
▼(-80.47% Downside)
Action:Reiterated
Date:08/26/26
The score is held back primarily by weak financial performance (profitability and cash generation deterioration alongside higher leverage). Technical indicators are supportive and help offset some risk, while valuation is constrained by loss-making results (negative P/E). The latest earnings call provides a moderately positive outlook via FY27 guidance and efficiency initiatives, but liquidity and execution risk remain key concerns.
Positive Factors
Loyalty and customer growth
Customer acquisition and loyalty are strengthening together, supporting repeat purchasing and higher customer lifetime value. A larger, more engaged customer base can provide a durable revenue foundation, reduce reliance on continual paid acquisition, and improve the scalability of the online and store network.
Negative Factors
Profitability and margin deterioration
The sharp revenue decline, swing to loss, and major gross-margin compression show that core economics weakened materially in the latest period. This raises concern about earnings durability and indicates that future growth will need to restore pricing, mix, and cost leverage rather than merely increase sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Loyalty and customer growth
Customer acquisition and loyalty are strengthening together, supporting repeat purchasing and higher customer lifetime value. A larger, more engaged customer base can provide a durable revenue foundation, reduce reliance on continual paid acquisition, and improve the scalability of the online and store network.
Read all positive factors
Adore Beauty Group Ltd. (ABY) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$23.25M
Dividend YieldN/A
Average Volume (3M)32.69K
Price to Earnings (P/E)―
Beta (1Y)0.33
Revenue Growth4.26%
EPS Growth-675.31%
CountryAU
Employees171
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.05
Shares Outstanding93,957,930
10 Day Avg. Volume26,006
30 Day Avg. Volume32,694
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.78
Price to Sales (P/S)0.14
P/FCF Ratio-1.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.37Price Target Upside-71.32% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$231.40M
Adore Beauty Group Ltd. Business Overview & Revenue Model
Company Description
Adore Beauty Group Limited operates an integrated content, marketing, and e-commerce retail platform in Australia and New Zealand. The company engages in the retail of beauty and personal care products, including skin, hair, make up, accessories, ...
How the Company Makes Money
Adore Beauty primarily makes money by retailing beauty and personal care products online, earning revenue from product sales to consumers via its e-commerce storefront. Its core revenue stream is the margin between the price it pays to source inve...
Adore Beauty Group Ltd. Earnings Call Summary
Earnings Call Date:Aug 23, 2026
(Q4-2026)
| Next Earnings Date:Feb 22, 2027
Earnings Call Sentiment Positive
The call presents a predominantly constructive operational story: record revenue, meaningful customer and loyalty gains, substantial marketing and operational efficiencies, completed infrastructure investments (NDC, ERP) and rapid retail expansion that underpin a clear plan to materially lift profitability in FY '27. However, FY '26 earnings were compressed (underlying EBITDA down ~39%) due to higher fixed costs from the still-immature store network and major investments. Liquidity and net debt levels, initial store losses and the risk of execution against ambitious FY '27 EBITDA targets temper the optimism. Overall, the operational progress and leading indicators suggest a positive outlook if execution on store maturation and NDC/ERP efficiencies proceeds as planned.Positive Updates
Operational & Inventory Improvements
Inventory tightly managed at $23.2 million including ~$5.1 million held in new stores; stock turn improved to 6.9x from 5.9x; head-office restructure, ERP and freight partnerships expected to deliver >$2.5 million in annualized cost efficiencies.
Negative Updates
Earnings Decline and Thin Margin
Underlying EBITDA declined 39.3% to $3.8 million (margin 1.8%), reflecting higher fixed costs from the maturing store network and infrastructure investments.
Read all updates
Q4-2026 Updates
Positive
Negative
Operational & Inventory Improvements
Inventory tightly managed at $23.2 million including ~$5.1 million held in new stores; stock turn improved to 6.9x from 5.9x; head-office restructure, ERP and freight partnerships expected to deliver >$2.5 million in annualized cost efficiencies.
Read all positive updates
Company Guidance
Management guided to FY27 revenue growth of at least 10% and a material step‑up in underlying EBITDA to $9–$13 million (up from $3.8m in FY26, 1.8% margin), driven by maturation of the store network (20 stores today, 25 by end FY27 after 13 openings in FY26 and five more planned), stronger omnichannel customers (omnichannel made up 11.9% of product revenue in H2, have 2.5x LTV and spend 52% more than online‑only), continued marketing efficiency (marketing down 22.8% to 8.8% of sales, ROAS up to 14x, CAC down ~37% to c.$35–$37), completed infrastructure benefits (semi‑automated NDC: $8m capex, ~ $2m annual labour savings, ~4‑year payback; new ERP), and balance‑sheet headroom (cash $0.7m, net debt $9.3m, $14.4m undrawn facilities) alongside inventory discipline ($23.2m inventory, ~$5.1m in new‑store stock, stock turn 6.9x) and a FY26 gross margin of 34.8% as the basis for improved margins and profitability next year.Adore Beauty Group Ltd. Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
41
Neutral
Cash Flow
22
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 207.28M | 198.81M | 195.72M | 182.18M | 199.66M |
| Gross Profit | 32.53M | 70.21M | 65.47M | 38.51M | 44.64M |
| EBITDA | 5.73M | 8.13M | 5.45M | 883.00K | 5.36M |
| Net Income | -4.38M | 761.00K | 2.17M | -559.00K | 2.38M |
Balance Sheet | |||||
| Total Assets | 110.85M | 83.81M | 67.67M | 62.41M | 59.23M |
| Cash, Cash Equivalents and Short-Term Investments | 715.00K | 12.67M | 32.85M | 27.76M | 29.77M |
| Total Debt | 42.50M | 10.45M | 1.72M | 624.00K | 1.17M |
| Total Liabilities | 74.83M | 43.55M | 28.02M | 26.19M | 21.91M |
| Stockholders Equity | 36.02M | 40.26M | 39.65M | 36.22M | 37.32M |
Cash Flow | |||||
| Free Cash Flow | -17.68M | 2.60M | 4.90M | -1.42M | 1.26M |
| Operating Cash Flow | -2.04M | 7.94M | 8.32M | 820.00K | 3.15M |
| Investing Cash Flow | -17.34M | -26.89M | -3.42M | -2.24M | -1.89M |
| Financing Cash Flow | 7.42M | -1.24M | 195.00K | -587.00K | -494.00K |
Adore Beauty Group Ltd. Technical Analysis
Negative
1.29
Price Trends
0.30
Negative
0.29
Negative
0.42
Negative
Market Momentum
-0.01
Positive
39.41
Neutral
14.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABY, the sentiment is Negative. The current price of 1.29 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.30, and above the 200-day MA of 0.42, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.41 is Neutral, neither overbought nor oversold. The STOCH value of 14.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ABY.
Adore Beauty Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$157.87M | 10.62 | 16.05% | 8.52% | 2.97% | -1.91% | |
63 Neutral | AU$361.13M | 33.73 | 23.74% | 4.23% | 4.64% | ― | |
62 Neutral | AU$42.65M | 7.99 | 14.55% | 8.18% | 8.43% | 23.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | AU$238.88M | -6.07 | -19.53% | 8.65% | 3.83% | -251.57% | |
54 Neutral | AU$23.25M | -5.47 | -11.41% | ― | 4.26% | -675.31% | |
51 Neutral | AU$597.88M | 145.66 | 3.54% | ― | 10.63% | -62.61% |
* Consumer Cyclical Sector Average
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Adore Beauty Group Ltd. Corporate Events
Adore Beauty bolsters governance with new Joint Company Secretary
Oct 21, 2026
Adore Beauty Group has strengthened its corporate governance structure with the appointment of Kylie Archer as Joint Company Secretary, effective immediately. She joins existing Joint Company Secretary Anna Sandham, who remains responsible for com...
Adore Beauty Sets November Date for 2026 Annual General Meeting
Oct 19, 2026
Adore Beauty Group Limited has released the notice of its 2026 Annual General Meeting and proxy form, with the meeting scheduled for 19 November 2026. The announcement has been authorised by the board, signalling the formal start of the company...
Adore Beauty Sees Lapse of 783,997 Performance Rights, Trimming Potential Dilution
Oct 12, 2026
Adore Beauty Group Ltd. has reported the lapse of 783,997 performance rights, after the conditions attached to these rights were not met or became incapable of being satisfied by 30 September 2026. The cessation of these securities reduces the com...
Adore Beauty Names Experienced Finance Executive Kylie Archer as Permanent CFO
Sep 6, 2026
Adore Beauty Group Limited has appointed Ms Kylie Archer as its Chief Financial Officer on a permanent basis, following an earlier announcement in July 2026. Archer brings extensive experience across retail, services and construction, and has prev...
Adore Beauty Sets Timetable for 2026 AGM and Board Nominations
Sep 2, 2026
Adore Beauty Group Limited has scheduled its 2026 Annual General Meeting for Thursday, 19 November 2026, in line with ASX Listing Rule requirements. The company will issue a formal Notice of Meeting to shareholders and release it to the ASX closer...
Adore Beauty Sets Out 2026 Corporate Governance Framework
Aug 23, 2026
Adore Beauty Group Ltd. has released its 2026 Corporate Governance Statement, outlining its framework for management oversight, board effectiveness and ethical conduct. The document details how the company structures its board, safeguards the inte...
Adore Beauty Delivers Record FY26 Revenue Amid Margin Pressure
Aug 23, 2026
Adore Beauty Group reported record group revenue of $207.3 million in FY26, up 4.3% on the prior year, supported by 14.4% growth in new customers to 418,600 and a 2.6% increase in active customers to 858,800. However, a challenging trading environ...
Adore Beauty Books Record Revenue as Omnichannel Investments Set Up Profit Rebound
Aug 23, 2026
Adore Beauty Group reported record FY26 revenue of $207.3 million, up 4.3% year-on-year, as its loyalty program, expanded retail network and IKOU brand boosted sales despite a challenging retail backdrop. Gross margin slipped to 34.8% and underlyi...
Adore Beauty lifts revenue to record high but swings to FY26 loss
Aug 23, 2026
Adore Beauty Group reported a 4.3% rise in FY26 revenue to a record $207.3 million, driven by an $18.6 million contribution from its expanding retail store network, as well as growth in retail media and owned brands. However, the company swung to ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.