The Adore Beauty Group Ltd (ASX: ABY) share price has dropped lower again on Tuesday following the release of an announcement.
At the time of writing, the online beauty retailer’s shares are down 1.5% to $6.40.
What did Adore Beauty announce?
This morning Adore Beauty provided the market with an update on its performance since listing on the Australian share market at the end of October.
According to the release, the company’s sales during the Black Friday and Cyber Weekend promotional sales period were stronger than it was expecting.
In addition to this, management revealed that its sales during the first half have been boosted by the extension of the COVID 19 lockdown in Victoria.
What does this mean for the first half?
In light of this stronger than expected trading, Adore Beauty has upgraded its guidance for the first half of FY 2021.
It is now expecting revenue to come in at approximately $95.2 million for the six months. This exceeds its prospectus forecast of $89 million by 7%.
Management advised that the expected uplift in revenue is also anticipated to have a positive impact on its operating earnings forecast for the half. Though, no guidance has been provided at this stage.
The company advised that this trading update is based on provisional management accounts and remains subject to the completion of the half year period and an external audit review.
Adore Beauty’s CEO, Tennealle O’Shannessy, commented: “We are pleased to report strong sales ahead of our Prospectus forecasts. The business has continued to scale, deliver content and meet the needs of our customers at a time when they need it most.”
Surprisingly, despite upgrading its guidance this morning, the Adore Beauty share price is still trading well below its IPO listing price of $6.75.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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