Beauty e-commerce retailer Adore Beauty Group (ASX: ABY) has informed that its CEO, Tamalin Morton, has noted her intention to step down in 2024 for personal reasons. Tamalin will remain in the position until September 2024. After the successful transition to a new CEO, she will take on a consulting role to provide ongoing strategic advice to the Company. 

Morton said, “I would like to thank the amazing Adore Beauty team. I have been immensely proud to lead Adore Beauty and of what we have accomplished together. While personal reasons have led me to make the difficult decision to step down as CEO, I remain committed to Adore Beauty and look forward to supporting the new CEO.”

With Tamalin’s consulting, the executive team remains focused on executing its strategic initiatives, including exploring a new physical store format, merger and acquisition opportunities and private label development. The business will continue to build on its strategy of increasing brand awareness, optimising customer experience, and delivering value to our shareholders. 

Chair of the Board, Marina Go, said, “On behalf of the Board, I would like to thank Tamalin for her outstanding leadership and contribution to Adore Beauty. As CEO, Tamalin has done an excellent job delivering Adore Beauty’s financial and operational successes and developing the strategic plan. Tamalin steps down as CEO with the business in a strong position.” 

In Q3 FY24, Adore Beauty delivered growth across key metrics. Its revenue stood at $45 million, up 8.9% on the prior corresponding period (PCP)

Its mobile app accounted for 28% of total revenue, up from 23% on PCP. Adore Beauty reaffirmed its guidance to achieve an EBITDA margin of 2-4% in FY24.

In the first half of FY24, Adore Beauty’s revenue was $100.7 million, up 7% on PCP, supported by record average order values and annual spending per customer. New brands and products remained key to retention and new customer acquisition. Adore Beauty added 15 new brands during the half, including Prada, Valentino, Ole Henriksen and Viktor & Rolf.

The Company has progressed with refined strategic initiatives. Its mobile app scaled well, contributing 26% of revenue in H1 FY24. It also launched a subscription service to improve customer experience and frequency.

At the end of the half, Adore Beauty was debt-free, cash flow positive and capital efficient, with a strong cash balance of $32.3 million.

Despite its positive financials, the Company anticipates retail conditions to remain challenging for the remainder of FY24. That’s because of continued higher cost-of-living pressures and subdued customer sentiment. 

Go added, “Under Tamalin’s leadership, the Company has returned to growth and continues to build solid trading momentum. There has also been significant progression of the strategy, including increasing brand awareness, launching a subscription service, developing our retail media proposition and mobile app growth. This has been in tandem with operational optimisation, to drive profitability.” 

The Board will start a process with a leading search firm to appoint a new CEO.