The Australian share market may be sinking deep into the red today, but two ASX retail shares are defying this and charging notably higher.
Let's see what is getting investors excited on Friday:
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Adore Beauty Group Ltd (ASX: ABY)
The Adore Beauty share price is up 5% to 91 cents. Investors have been buying the online beauty retailer's shares after it released a trading update for FY 2024.
Adore Beauty revealed that it delivered unaudited FY 2024 revenue of $195.7 million for the 12 months ended 30 June. This is up 7.4% on the prior corresponding period, which management believes is a strong result in a challenging retail environment.
This growth was underpinned by Adore Beauty's continued focus on customer centricity, which has seen its returning customer base grow 5.8% to a record 519,000. Total active customers increased 1.6% to 814,000 for the year.
Management also advised that it expects an FY 2024 EBITDA margin between 2.2% to 2.5%. This would mean EBITDA in the range of approximately $4.3 million to $4.89 million.
The ASX retail share's CEO, Tamalin Morton, commented:
Adore Beauty continues to deliver revenue and active customer growth, even as cost-of-living pressures impact consumer sentiment and trading conditions more broadly.
Our solid performance over FY24 has reaffirmed the resilience of both our business and the beauty and personal care category, and we continue to focus on meeting customer needs, while growing both sales and profitability.
Michael Hill International Ltd (ASX: MHJ)
The Michael Hill International share price is up 7.5% to 57.5 cents. This has also been driven by the release of an FY 2024 trading update.
According to the release, the jewellery retailer expects to report sales growth of 3.8% in FY 2024. This follows a stronger second half, with group sales rising 4.9% on the prior corresponding period.
Michael Hill's growth was even stronger late in the financial year, with group sales rising 6% during the last seven weeks. This was driven by positive momentum across all markets and channels.
In light of this, management expects its earnings before interest and tax (EBIT) to be in line with analyst expectations. It is forecasting group comparable EBIT of between NZ$14 million to NZ$16 million.
The ASX retail share's CEO, Daniel Bracken, said:
While challenging economic conditions have persisted across all markets throughout the year, particularly in the fine jewellery segment, the Group has continued to outperform the category, with a focus on retail fundamentals and execution of its clearly articulated strategies.
Particularly pleasing was the consistent performance of our Canadian business throughout the year.
