👉 Background: Adore Beauty was founded in Melbourne back in 1999. It's known for stocking big beauty brands, fast delivery times and the sneaky Tim Tams it leaves in the box. These days, Adore has around 827,000 active customers and stocks more than 200 brands.

👉 What happened: Adore has posted record revenue of just under $200 million and net profit of $2.4 million. Buuut the company has warned that its profit will sink this year and won't start growing again until 2024.

👉 What else: Investors didn't love this news and the share price dropped more than 10%. But Adore is hoping that doubling the investment in its 'owned' brands will bump up its margins handsomely.

What's the key learning?

💡While selling the branded products of others may attract customers, 'owned' brands are where lots of the real money is made.

💡 When you stock another company's brand, the margins or ‘mark ups’ on these products are often super slim. So companies like Adore are turning to 'owned' brands to beef up margins. By owning the brand, you’ve got more control over production, pricing and profitability.

💡 Adore certainly aren’t the first retailer to run this strategy. Think: Kmart’s Anko range or Aere from The Iconic. And with the Aussie beauty and personal care market worth over $11 billion, and growing, only time will tell how big Adore could become in the future.