The hits continue for the online beauty retailer and after starting strongly yesterday following half year results it became clear that current run rates would mean a herculean task to meet the markets full year expectations, and the stock rolled off. The numbers didn’t look too bad – revenue up 18% to $113m was ahead of consensus and while margins took a dive it had been well flagged to the market. The issue came with YTD trading with the first 6 weeks being ‘only’ 14% higher than the start of last calendar year. On that run rate Adore will likely miss FY consensus sales by 3% as well as struggling to reach earnings forecasts as margins are low. This has been and continues to be a poor pick, and is hurting this portfolios returns. We have management in today at lunchtime and will see what they have to say, we doubt they will turn the tide!
MM is neutral ABY
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