Adore Beauty share price volatile following CEO resignation

Adore Beauty's CEO has called it time.

| More on:
a happy woman wearing a white towel around her chest and another around her head laughs heartily while holding two slices of cucumber over her eyes as part of a beauty regime.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Adore Beauty shares are having a volatile Wednesday morning 
  • Meanwhile, the broader ASX is roaring higher today 
  • Outgoing O’Shannessy will depart the company in February 2023 

The Adore Beauty Group Ltd (ASX: ABY) share price is having a rollercoaster Wednesday morning.

This follows the company's late afternoon release yesterday that its CEO Tennealle O'Shannessy has resigned.

At the time of writing, shares in the online beauty retailer are down 1.47% at $1.345. Earlier, the share price rose as much as 8.43% to an intraday high of $1.48.

For context, the All Ordinaries (ASX: XAO) is 0.96% higher to 7,308.5 points on the back of Wall Street's overnight gains.

Adore Beauty commences search to replace CEO

Despite the shock update, Adore Beauty advised it has time to conduct a global search for the replacement of its CEO.

O'Shannessy is slated to depart the company in February 2023 and head over to ASX-listed IDP Education Ltd (ASX: IEL).

Over there, she'll take on the reins as CEO and managing director of the language testing and student placement company.

In the interim, O'Shannessy will offer her support to ensure a smooth transition when the new Adore Beauty CEO commences.

Chair of the Adore Beauty Board Marina Go said:

…I would like to thank Tennealle for her outstanding leadership and contribution during a particularly challenging couple of years. As CEO, Tennealle has done an excellent job delivering Adore Beauty's financial and operational successes, including exceeding all prospectus forecasts, and leaves the business well-positioned for future growth.

Looking towards the future, Go added:

The foundations of our long-term growth strategy are now in place with our mobile app, loyalty program, and first 'owned brand' all launched and scaling strongly in a market benefitting from the structural shift to e-commerce, which has seen us increase our active customer base by 90% in two years.

About the Adore Beauty share price

After hitting an all-time low of 97.5 cents on 12 July, the Adore Beauty share price has accelerated by 50%.

It appears bargain hunters swooped in as inflation begins to cool down and confidence is being regained across the ASX.

At today's price, Adore Beauty has a market capitalisation of approximately $126.60 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education Pty Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

A couple of friends at a rooftop party enjoying some hot and tasty Domino's pizza
Dividend Investing

Own Domino's shares? Today is pay day!

Eligible Domino’s shareholders can expect some welcome passive income today.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

a woman with lots of shopping bags looks upwards towards the sky as if she is pondering something.
Consumer Staples & Discretionary Shares

How a potential demerger could deliver a 10% upside for this ASX 200 stock

Investors might have even more reasons to love this ASX 200 stock if rumours are true.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Consumer Staples & Discretionary Shares

Why Goldman Sachs expects market-beating returns from Super Retail shares

Goldman Sachs thinks this retail share could offer big returns for investors.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
52-Week Highs

Why is the A2 Milk share price up 46% year to date and at a 52-week high?

This infant formula company's shares have delivered the goods this year.

Read more »

Happy man on a supermarket trolley full of groceries with a woman standing beside him.
Consumer Staples & Discretionary Shares

2 things I'm waiting for before buying Coles shares

I'm waiting for two things before I add Coles to my share portfolio.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Consumer Staples & Discretionary Shares

If I'd put $5,000 in Wesfarmers shares at the start of 2024, here's what I'd have now

Are investors smiling this year? Let's see how its shares have performed.

Read more »