Adore Beauty (ASX:ABY) calls for a more inclusive beauty industry

There's more to Adore Beauty Group Ltd (ASX: ABY) than its share price. The company has called out the beauty industry to improve inclusion.

There's more to Adore Beauty Group Limited (ASX: ABY) than its share price. The company has called out the entire Australian beauty industry for its lack of inclusion. In particular, when it comes to products such as foundations and concealers. In an open letter from Australia's leading online beauty retailer, Adore has called for equal access regardless of skin tone.

Despite the Adore share price falling 27% since listing in October, the company has continued to empower its consumers and challenge the status quo. Adore Beauty's 'Global Shades' project is an example of that.

adore beauty share price

Image Source: Getty Images

Beauty is indiscriminate, products should be too

The open letter and an accompanying petition from Adore targets the ongoing hardship for people of colour in Australia. This includes the ability to find foundations and concealers that match their skin tone at an affordable price.

This move is part of the bigger Global Shades campaign. In fact, the campaign began with a letter from employee Shanthi Murugan in 2017. At the time, Shanthi, a South Asian woman of colour, couldn't find the right foundation and concealer for her skin tone. This letter reached founder, Kate Morris, and ignited a push towards stocking a broader range of shades.

Ms. Murugan has been leading that charge, as head of campaign and strategy, for the past four years. Commenting on the project to Business Insider, Ms. Murugan stated:

We know we're not perfect and we're trying to be better and deliver an inclusive experience. The support from the Australian public and beauty industry to rebuild an accurate picture of 'Australian beauty' will result in real change and a positive shift for customers.

In a bid to be more inclusive, Adore Beauty is working towards ranging 2,600 various shades from 350 complexion products. This extended range to accommodate all skin tones resides in a dedicated category on the company's website called Global Shades.  

A voice for change

The company originally founded by Kate Morris in 1999 from a garage in Melbourne. Since its humble beginnings, Adore Beauty has grown to become Australia's leading online beauty retailer. Since the start, Kate Morris desired to empower the consumer in what could be an "intimidating and unpleasant" experience.

That mission has travelled from the garage all the way to the ASX while resonating with millions of customers in the process. The company currently offers more than 260 brands and over 10,800 products through online channels.

Although the Adore Beauty share price might not reflect progress, the financials do. In the most recent half-year report, the company recorded a revenue increase of 85% to $96.2 million. This was driven by strong customer growth, adding a further 350,000 active customers in 12 months.

Adore Beauty share price glamour shot

Adore Beauty is helping its customers feel beautiful in their own skin. However, the company's share price isn't looking so pretty. Since listing, Adore shares have fallen nearly 27% from $6.92 to $5.06. This is despite the online retailer producing strong results in the last half and management being optimistic about executing its strategy ahead. 

Based on the current Adore Beauty share price, the company's market capitalisation is now $470.6 million.

Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Retail Shares

Woman with spyglass looking toward ocean at sunset.
Retail Shares

How much could the Wesfarmers share price rise in the next year?

Can the Wesfarmers share price continue rising from here?

Read more »

Person holding Australian dollar notes, symbolising dividends.
Retail Shares

How many Wesfarmers shares do I need to buy for $8,000 of passive income?

This stock could be among the best ASX options for dividends.

Read more »

Two friends giving each other a high five at the top pf a hill.
Retail Shares

A rare buying opportunity in 1 of Australia's top shares?

I think this could be an excellent time to buy this leading ASX share…

Read more »

Woman in a hammock relaxing, symbolising passive income.
Retail Shares

If I invest $15,000 in Wesfarmers shares, how much passive income will I receive in 2027?

Let’s see what income a $15,000 investment could unlock.

Read more »

Young lady in JB Hi-Fi electronics store checking out laptops for sale
Retail Shares

JB Hi-Fi vs Harvey Norman: Which dividend stock wins?

Comparing JB Hi-Fi and Harvey Norman shares: which ASX giant wins on dividend yield and value?

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Retail Shares

By September 2027, Wesfarmers shares could turn $10,000 into…

Can the owner of Bunnings and Kmart build our wealth in the next year?

Read more »

A trendy woman wearing sunglasses splashes cash notes from her hands.
Retail Shares

3 reasons why the Wesfarmers share price is a buy

This business has a very promising future. Here’s why I think it’s a buy…

Read more »

Frustrated man looking exhausted while sitting at his desk with his laptop and carrying his glasses in his hand.
Retail Shares

Why the ASX 200 just hit a 6-week low

Consumer sentiment cracked and the retailers wore it.

Read more »