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· Posted on
February 21, 2024

Adore Beauty's revenue slides as shoppers transition back to the stores-of-old

After a pandemic boom, Adore Beauty is going back to the drawing board.

What's the key learning?

  • Adore Beauty announced that its first quarter revenue dropped to just over $45m - which is a 29% drop from the same time last year.
  • Adore Beauty is still confident it will hit its full year profit through its private label brands.
  • Private label is a secret weapon for retailers on their path to profitability, and now Adore Beauty is desperate to pull itself out of a revenue rut.

👉 Background: Adore Beauty is the online cosmetics retailer that was founded way back in 1999 in a garage. Now, it’s a public company with nearly 800,000 active customers.

👉 What happened: After a pandemic boom, Adore is going back to the drawing board. It announced that its first quarter revenue dropped to just over $45m - which is a 29% drop from the same time last year.

👉 What else: Adore Beauty is still confident it will hit its full year profit. And the great white hope? Adore Beauty’s private label brands - we’re talking two sunscreen products to kick us off.

What's the key learning?

💡Private label is a secret weapon for retailers on their path to profitability. And right now, Adore Beauty is desperate to pull itself out of a revenue rut.

💡Get this: a private label product can cost retailers 40 per cent to 50 per centless to manufacture and distribute to customers. While in the past, consumers were driven by quality brands, now many consumers are driven by good value - so it works for both the retailer and consumer.

💡Coles is also focusing on private labels - with an expected 40% of its salesexpected to be private label over the next few years. So as long as Adore makes winning products like Coles' Big Mac sauce, it could turn into a major profit spinner for them.

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