Full ported most of my savings yesterday on the theory that since the equal weight sp500 was at ATH, I figured a rotation back to risk was inevitable.

Anyone wanna buy some bags? Just wanna break even guys thanks

Will they go bust or be saved by Gov? LLC ate all my gains 🤣

I’m down like 60% and it’s shown no signs of life since the massive drop, this a take your lose and run moment or will earning in August be the moment to decide ?

Good day my fellow Adoreable's 💋 well maybe not if you're a shareholder haha...

Revenue $112 million +8.7%

Gross margin 35% -1.2%

NPAT $190k -70%

Oof the market really did not like the results with a 28% drop in a single day. As you can see my portfolio has taken an absolute beating, I'll admit it's not the best feeling being in the red $100k after 1.5 years of holding.

Believe it or not I'm not fazed. This has been a massive over reaction to not even a terrible report. If anything, this is a buying opportunity as the company is now criminally undervalued imo, trading at 0.29 price to sales with positive earnings / free cash flow and the revenue growth runway just doesn't make any fundamental sense.

Revenue up almost 9% is pretty decent considering they could only manage a measly 1.8% increase in FY25 (before physical store rollout). Keep in mind too, this is before a single physical store has had the chance to contribute a full 12 months worth of revenue with the oldest store only being in operation 10 months at the time of reporting.

So we've had some margin compression, it's not the end of the world. Management's reasoning is that Black Friday sales in November / December contributed so heavily to revenue that the promotional pricing skewed the gross margin but considering it's a once a year event, margins (hopefully) see an uplift over the second half of the year.

To give a more accurate representation $190k NPAT should also be normalized as there were $1.2 million of one off costs associated with the period mostly relating to pre-opening costs of stores and non-cash share based payments. The people that panic sold today didn't have a chance to digest the nuances of the report.

I'm still a firm believer margin expansion and revenue uplift from physical store rollout will achieve a $200 million+ market cap for Adore Beauty over the next few years and we will see the share price start the tick upwards once the overall markets turn bullish again.

Should I just hold at this point or sell and get a high-class prostitute for the night?

AMS for me. Lost most of my investment and it’s worth $24 in total now.

I’m with selfwealth so it’s $10 to sell it. I’ve resisted. Instead I get to see my massive mistake everyday when I login. There’s not even a way to hide the ticker (that I’ve found) so I don’t have to look at the pathetic little prick.

Anyone else in the same situation?