Latest news with #SachaLaing
Perth Now
3 days ago
- Business
- Perth Now
Popular online retailer opening two Perth stores
Online cosmetics retailer Adore Beauty is ramping up its bet on bricks-and-mortar by opening two stores in Perth just weeks apart. Adore will open the 180sqm store in Westfield Carousel on Thursday, with the second location at Booragoon — slightly bigger at 189sqm — coming two weeks later on July 10. It marks Adore's first venture outside its home State of Victoria, where it opened two shopfronts in Southland and Watergardens earlier this year. Adore chief executive Sacha Laing said WA was its fastest growing market in terms of sales. He teased of at least two more stores in Perth over the next 18 months. 'WA was a focus for us, particularly given the speed of the growth in that market,' Mr Laing told The West Australian when asked why Perth beat Sydney. Adore opens its first Sydney store in August. 'When I had the opportunity to secure two locations in the Westfield centres in Booragoon and Carousel, I was like, 'Great, Perth will be our next market that we open in'.' Adore opened its first retail store this month at Westfield Southland. Credit: Supplied The ASX-listed retailer launched as online-only in 2000 and last November first unveiled plans to open more than 25 stores in the next three years. Mr Laing said it was on track to have 20 stores nationally by the end of 2026 after penning deals with 'several of the country's largest landlords'. He is confident about Adore's push into bricks-and-mortar despite social media platforms, like TikTok, becoming an increasingly popular storefront, especially for young consumers. 'In Australia, only 13 per cent of retail sales in the beauty category are done online, so 87 per cent of retail sales in the beauty category are done in physical stores,' Mr Laing said. 'When we look at the opportunity to grow the Adore network . . . there's this huge market that we haven't previously addressed.' Adore Beauty chief executive Sacha Laing at the Watergardens store in Melbourne. Credit: Nicole Squelch While Adore has more than 14,000 products available across 300 brands online, customers will be offered a smaller, curated selection from about 90 brands at Carousel and Booragoon. But for customers who are after a product that is out of stock or only available online, the store's digital kiosk — or what Adore calls the endless aisle — will allow them to pay for it in-store and delivered to their homes. Mr Laing said the stores were deeply immersed in digital, meaning it will mostly be paperless, with screens displaying product descriptions and prices on shelves. '(Being digitally-led enables Adore to) expand ranges really quickly,' he said. 'We could double the size of a brand overnight if we wanted to. We could double the size of a category overnight if we wanted to.' The Perth stores will also offer in-store treatments and dermal therapists. Adore's physical stores are set to challenge major industry players Mecca — which holds the biggest market share in cosmetics in Australia at about 21 per cent — and Sephora, the beauty chain owned by French luxury goods giant LVMH. Sephora and Mecca already have stores in Carousel, with the latter also in Booragoon. According to IBISWorld, Australia's $6 billion cosmetics industry is forecast to grow 2.5 per cent over the next five years. Mr Laing reckons the market is 'big enough for us all'. 'Our product mix and our category mix are quite different. When we think about the competitive set or the overall landscape, there's department stores, there's the value offerings of some of the other mass market beauty retailers, and there's specialty beauty retailers . . . but the market is quite fragmented and what that enables us to do is find our own space,' he said. Adore — founded by Kate Morris — reported revenue of $195.7 million in the 2024 financial year, with net profit hitting $2.2m. That compared with a loss of $559,000 the prior year. Meanwhile, Mecca's latest accounts released earlier this month revealed it had raked in just over $1.2b in revenue in the year to the end of December 2023, up from the $971.5m recorded the previous year. Adore has had a troubled life on the Australian Securities Exchange, with its share price tumbling since listing in October 2020 from $6.91 to 64¢ on Tuesday. Asked if he watched the share price, Mr Laing said 'absolutely'. 'My job is to create shareholder value and to attract new investment interest in the business as well,' he said. 'Acquiring new customers through our online channels and through our physical stores, improving the frequency of new customers and growing the overall revenue line of the business, will inevitably create great profit growth. 'Growing profitability, fundamentally, is what will drive the share price.' Mr Laing took on the top job at Adore last September, replacing Tamalin Morton. He has more than 25 years of experience in the retail industry, having held executive roles at David Jones and Country Road Group. He also led youth fashion retailer General Pants Co and accessory brand Colette by Colette Hayman, which was saved from administration early last year. The reporter travelled to Melbourne as a guest of Adore Beauty.
Perth Now
25-06-2025
- Business
- Perth Now
Popular retailer opening stores in Perth shopping centres
Online cosmetics retailer Adore Beauty is ramping up its bet on bricks-and-mortar by opening two stores in Perth just weeks apart. Adore will open the 180sqm store in Westfield Carousel on Thursday, with the second location at Booragoon — slightly bigger at 189sqm — coming two weeks later on July 10. It marks Adore's first venture outside its home State of Victoria, where it opened two shopfronts in Southland and Watergardens earlier this year. Adore chief executive Sacha Laing said WA was its fastest growing market in terms of sales. He teased of at least two more stores in Perth over the next 18 months. 'WA was a focus for us, particularly given the speed of the growth in that market,' Mr Laing told The West Australian when asked why Perth beat Sydney. Adore opens its first Sydney store in August. 'When I had the opportunity to secure two locations in the Westfield centres in Booragoon and Carousel, I was like, 'Great, Perth will be our next market that we open in'.' Adore opened its first retail store this month at Westfield Southland. Credit: Supplied The ASX-listed retailer launched as online-only in 2000 and last November first unveiled plans to open more than 25 stores in the next three years. Mr Laing said it was on track to have 20 stores nationally by the end of 2026 after penning deals with 'several of the country's largest landlords'. He is confident about Adore's push into bricks-and-mortar despite social media platforms, like TikTok, becoming an increasingly popular storefront, especially for young consumers. 'In Australia, only 13 per cent of retail sales in the beauty category are done online, so 87 per cent of retail sales in the beauty category are done in physical stores,' Mr Laing said. 'When we look at the opportunity to grow the Adore network . . . there's this huge market that we haven't previously addressed.' Adore Beauty chief executive Sacha Laing at the Watergardens store in Melbourne. Credit: Nicole Squelch While Adore has more than 14,000 products available across 300 brands online, customers will be offered a smaller, curated selection from about 90 brands at Carousel and Booragoon. But for customers who are after a product that is out of stock or only available online, the store's digital kiosk — or what Adore calls the endless aisle — will allow them to pay for it in-store and delivered to their homes. Mr Laing said the stores were deeply immersed in digital, meaning it will mostly be paperless, with screens displaying product descriptions and prices on shelves. '(Being digitally-led enables Adore to) expand ranges really quickly,' he said. 'We could double the size of a brand overnight if we wanted to. We could double the size of a category overnight if we wanted to.' The Perth stores will also offer in-store treatments and dermal therapists. Adore's physical stores are set to challenge major industry players Mecca — which holds the biggest market share in cosmetics in Australia at about 21 per cent — and Sephora, the beauty chain owned by French luxury goods giant LVMH. Sephora and Mecca already have stores in Carousel, with the latter also in Booragoon. According to IBISWorld, Australia's $6 billion cosmetics industry is forecast to grow 2.5 per cent over the next five years. Mr Laing reckons the market is 'big enough for us all'. 'Our product mix and our category mix are quite different. When we think about the competitive set or the overall landscape, there's department stores, there's the value offerings of some of the other mass market beauty retailers, and there's specialty beauty retailers . . . but the market is quite fragmented and what that enables us to do is find our own space,' he said. Adore — founded by Kate Morris — reported revenue of $195.7 million in the 2024 financial year, with net profit hitting $2.2m. That compared with a loss of $559,000 the prior year. Meanwhile, Mecca's latest accounts released earlier this month revealed it had raked in just over $1.2b in revenue in the year to the end of December 2023, up from the $971.5m recorded the previous year. Adore has had a troubled life on the Australian Securities Exchange, with its share price tumbling since listing in October 2020 from $6.91 to 64¢ on Tuesday. Asked if he watched the share price, Mr Laing said 'absolutely'. 'My job is to create shareholder value and to attract new investment interest in the business as well,' he said. 'Acquiring new customers through our online channels and through our physical stores, improving the frequency of new customers and growing the overall revenue line of the business, will inevitably create great profit growth. 'Growing profitability, fundamentally, is what will drive the share price.' Mr Laing took on the top job at Adore last September, replacing Tamalin Morton. He has more than 25 years of experience in the retail industry, having held executive roles at David Jones and Country Road Group. He also led youth fashion retailer General Pants Co and accessory brand Colette by Colette Hayman, which was saved from administration early last year. The reporter travelled to Melbourne as a guest of Adore Beauty.
Yahoo
17-02-2025
- Business
- Yahoo
Adore Beauty Group Ltd (ASX:ABY) (H1 2025) Earnings Call Highlights: Strategic Growth and ...
Revenue: $103 million, an increase of 2.3% on the prior year. Gross Margin: Increased by 270 basis points to 36.2%. EBITDA: Nearly doubled to $4.7 million, with a margin of 4.5%. EBIT: $2.8 million, a 126% uplift, with an EBIT margin of 2.7%. Operating EBITDA: Increased 64.8% to $4.3 million, with a margin of 4.2%. Marketing Expenses: Decreased by 0.6 percentage points to 13.3% of sales. Cash Position: $11.7 million in cash on hand as of December 31, 2024. Customer Database Growth: Contactable database grew by 20% to 1.26 million. Active Customer Base: Increased by 4%. Store Expansion: First physical store opened, with plans for four to six additional stores in 2025. Warning! GuruFocus has detected 3 Warning Signs with AUDGF. Release Date: February 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adore Beauty Group Ltd (ASX:ABY) reported a gross margin increase of 270 basis points, reflecting successful margin accretive initiatives. The company completed the acquisition of iKOU, which is performing well and is expected to contribute to future growth and margin expansion. Adore Beauty's contactable database grew by 20% to 1.26 million, with a 4% increase in active customers, indicating strong customer acquisition efforts. The launch of the first physical retail store marks a significant step towards becoming an omnichannel beauty retailer, with plans for additional store openings. EBITDA nearly doubled to $4.7 million, and EBIT increased by 126%, demonstrating the effectiveness of the company's strategic refresh and focus on profitability. Revenue growth was modest at 2.3%, indicating potential challenges in accelerating top-line growth. The company's cash position decreased significantly from $32 million to $11.7 million, largely due to investments in acquisitions and new stores. There was a slowdown in the core online business growth in the latter part of the year, attributed to a focus on profitable revenue rather than volume. The competitive landscape in the physical retail space, with established players like Mecca and Sephora, poses a challenge for Adore Beauty's store differentiation. The company has not provided detailed segment reporting, making it difficult to assess the individual performance of new initiatives like iKOU and retail stores. Q: Can you explain the slowdown in the core online business growth in the last four months of the year? Was it expected or due to external factors? A: Sacha Laing, CEO: The slowdown was a conscious decision to focus on quality of earnings. We prioritized profitable revenue, which involved refining our promotional cadence and removing unprofitable products. This approach aims for sustained long-term profitability rather than just top-line growth. Q: With the focus on profitable revenues, can we expect the core online business to grow at market rates or remain flat? A: Sacha Laing, CEO: We do not expect the online business to remain flat. We are focused on growing both the core and online business, supported by the halo effect of our store network. Our gross margin growth is a key performance indicator, and we expect it to continue improving. Q: You've achieved a 200 basis point margin expansion already. Can we expect further gross margin improvements, especially with the new physical stores? A: Sacha Laing, CEO: Yes, we expect further margin improvements. Key drivers include managing promotional cadence, growth of our own brands, and retail media expansion. Our new platform and dedicated team will continue to drive revenue and service for our brand partners. Q: How does Adore Beauty plan to differentiate its physical stores from competitors like Mecca and Sephora? A: Sacha Laing, CEO: Our stores are an elevated extension of our online platform, deeply digitally immersed with features like digital pricing and content linked to our online ecosystem. We offer a brand-agnostic environment with personalized advice, creating a unique shopping experience. Q: What are the key metrics investors should focus on now that Adore Beauty is becoming an omnichannel retailer? A: Sacha Laing, CEO: Focus on gross profit margin improvement, EBIT margin expansion, and EBITDA margin growth. These metrics reflect our strategic focus on profitability and long-term shareholder value, driven by our store network and own brand growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
