Pureplay online cosmetics retailer Adore Beauty has reported softer sales during its December half as it navigates a volatile post-Covid retail environment.

For the six months to December 31, sales fell 17 per cent to $93.6 million while EBITDA reached $406,000 reflecting lower operating leverage, inflationary pressures and investments in key initiatives.

The active customer base declined by 9 per cent to 801,000 with sales through the company’s loyalty program, Adore Society, contributing 63 per cent of revenue and sales via its mobile app, 18 per cent. Returning customers contributed 78 per cent of all revenue and their ranks grew by 10 per cent during the half.

Company CEO Tamalin Morton said the retailer is “cycling a period of significant growth” as year-on-year growth comparison reflects a volatile trading environment in the prior period.

“Despite challenging trading conditions, we remain optimistic about Adore Beauty’s growth opportunities.

“Our loyal returning customers, growing brand awareness and scaling strategic initiatives ensure we are well placed to take advantage of the long-term structural shift to e-commerce.”

During the half, the retailer added 13 new brands including Dior and Huda Beauty and expanded its own-brand portfolio with product launches.

• Further reading: Adore Beauty credits customer loyalty for strong sales growth