Adore Beauty's share price has bronzed its way to its highest level in more than two months.
👉 Background: Adore Beauty launched in 2000 when beauty and make up was largely sold in department stores like Myer and David Jones. In 2020, Adore Beauty listed on the ASX at a valuation of $630 million.
👉 What happened: Since then, Adore Beauty's valuation has dropped to under $100 million. But now, Adore Beauty's share price has bronzed its way to its highest level in more than two months. Their quarterly results saw their active customers jump to over 803,000 in the September quarter, and their revenue jumped by 4.7%.
👉 What else: Adore reckons its new subscription service has been a big contributor to these results - despite this not being such a common path for retailers.
💡Move over streaming services or gym memberships... there’s a new subscription sheriff in town: e-commerce. By offering subscription services, retailers are encouraging repeat purchases of their product, which increases the lifetime value of their customer.
💡For Adore customers, they can get up to 15% discount on products that are part of a subscription. For Adore, the subscription is a way to lock in recurring revenue at a set frequency.
💡And retailer subscriptions clearly work. Amazon's Prime customers spend roughly four times more than non-Prime customers.
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