SkinKandy builds momentum beyond its IPO debut

IPO forecasts surpassed in first listed year

SkinKandy delivered a stronger first year as an ASX-listed company, beating the forecasts set in its IPO prospectus across revenue, EBIT, profit and operating cash flow. Pro forma revenue reached A$90.2 million, up 29% on FY25, while pro forma EBITDA rose 41% to A$24.6 million and pro forma net profit after tax increased 41% to A$9.0 million.

The headline statutory result is much less flattering, though not because the underlying retail operation stopped making money. Statutory NPAT fell 92% to A$0.6 million after A$11.1 million of IPO costs and about A$0.5 million related to accelerated vesting under the legacy management equity plan. Those items are described as non-recurring, but the distinction between statutory earnings and the unaudited pro forma measures will remain important for shareholders assessing the business after its listing costs have passed.

109 stores become 115 as expansion continues

SkinKandy added 22 stores during FY26, taking its network from 87 to 109 locations across Australia and New Zealand, with no closures recorded. Six more stores had opened by the date of the annual report, while 11 additional leases had been approved for FY27. Management is targeting 18 to 20 further ANZ openings, alongside five to seven refurbishments, relocations or upsizes.

The existing network is still relatively young: 54% of stores were less than 36 months old at the reporting date. The company says new locations typically reach baseline store-level profitability after about 10 months, then mature over the following two to three years. Like-for-like revenue growth of 9.6% exceeded the 8.1% prospectus forecast, suggesting the result was not solely a product of opening more doors.

Trading has remained brisk into the new year. Revenue for the first seven weeks of FY27 was 22% ahead of the prior corresponding period, according to the report, with gross margin consistent with FY26 and stores opened since the IPO trading in line with expectations. These are early figures rather than a full-year outlook, but they provide the first indication of whether the post-IPO momentum is carrying into the next reporting period.

Cash supports store investment and international plans

SkinKandy finished FY26 with A$13.8 million in total cash reserves, including A$6.0 million in term deposits, and no drawn debt. Pro forma operating cash flow was A$21.3 million, equivalent to 101% cash conversion against pro forma EBITDA, while capital expenditure of A$7.4 million was directed principally towards store fit-outs and the relocation of the support office and warehouse.

The next leg of the strategy is more ambitious than the ANZ rollout alone. SkinKandy says workstreams in the United States and South Africa are progressing, with in-market recruitment under way and lease negotiations active. South Africa is identified as the potential first market, with management working towards delivery in the second half of FY27. The company also identifies a potential ANZ network of 180 to 210 stores, although that figure is an opportunity estimate rather than a committed target.

Growth model faces execution and earnings tests

The model remains services-led: piercing and aftercare generated 61% of FY26 revenue, while fashion jewellery contributed 39%. SkinKandy is also targeting higher jewellery attachment, repeat visitation, personalised marketing and an agentic AI workforce aimed at roster optimisation, store utilisation and back-office cost control.

That growth agenda carries familiar retail risks. The company flags potential lease and site constraints, cannibalisation between stores, recruitment and training pressure, discretionary consumer spending, supply-chain exposure and the additional regulatory complexity of international expansion. It also plans to introduce a new executive incentive framework centred on underlying profit before tax, like-for-like sales growth and strategic execution, while specific long-term incentive targets remain undisclosed. The test in FY27 will be whether rapid expansion can continue without diluting store economics or making the clean earnings story harder to see.