Adore Beauty GroupASX:ABY -1.67%41 Gross Margin % is 34.98% as of Dec. 2025, which is 5% above its 10-year median of 33.33. GuruFocus rates ASX:ABY with a GF Score™ of 41/100 and a GF Value™ of A$1.08 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Adore Beauty Group ranks worse than 52.82% on this metric.
The historical rank and industry rank for Adore Beauty Group's Gross Margin % or its related term are showing as below:
ASX:ABY'
s Gross Margin % Range Over the Past 10 Years
Min: 32.82 Med: 33.33 Max: 35.31
Current: 34.69
During the past 6 years, the highestGross Margin % of Adore Beauty Group was 35.31%. The lowest was 32.82%. And the median was 33.33%.
ASX:ABY's Gross Margin % is ranked worse than 52.82% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs ASX:ABY: 34.69
Adore Beauty Group had a gross margin of 34.98% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Adore Beauty Group was 0.00% per year.
Adore Beauty Group (ASX:ABY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Adore Beauty Group had a gross margin of 34.98% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Adore Beauty Group Gross Margin % Related Terms
Adore Beauty Group Gross Margin % Historical Data
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The historical data trend for Adore Beauty Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:ABY vs CASY, WSM, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, Adore Beauty Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Adore Beauty Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Adore Beauty Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Adore Beauty Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Adore Beauty Group (ASX:ABY) has a Gross Margin % of 34.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Adore Beauty Group and its competitors. This is near median its historical median of 33.33. Over the past decade, Adore Beauty Group's Gross Margin % has ranged from 32.82 to 35.31. According to the industry distribution chart, Adore Beauty Group ranks #590 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 52.8%.
Is Adore Beauty Group's Gross Margin % too high?
Adore Beauty Group's current Gross Margin % of 34.98% is near median its 10-year median of 33.33. Over the past 10 years, this metric has ranged from a low of 32.82 to a high of 35.31. The Retail - Cyclical industry median Gross Margin % is 36.23. Adore Beauty Group's value of 34.98% is 3.5% below this industry median. Based on the distribution chart, Adore Beauty Group ranks #590 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Adore Beauty Group has a GF Score™ of 41/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Adore Beauty Group's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Adore Beauty Group ranks #590 out of 1117 companies for Gross Margin %. This places Adore Beauty Group in the lower half of its industry. The industry median Gross Margin % is 36.23. Adore Beauty Group's value of 34.98% is 3.5% below this benchmark. Historically, Adore Beauty Group's own Gross Margin % has ranged from 32.82 to 35.31 over the past decade. While the company's 10-year median is 33.33 vs. the industry median of 36.23, Adore Beauty Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Adore Beauty Group's current Gross Margin % of 34.98% is 3.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Adore Beauty Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adore Beauty Group's current Gross Margin % is 34.98%, which is near median its own 10-year median of 33.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adore Beauty Group stock overvalued right now?
Based on GuruFocus' analysis, Adore Beauty Group (ASX:ABY) is currently considered Possible Value Trap. The stock's GF Value™ is A$1.08, compared to a current price of A$0.30 — trading 72.7% below its estimated fair value. The current Gross Margin % is 34.98%, which is near median its 10-year median of 33.33 and 3.5% below the Retail - Cyclical industry median of 36.23. Adore Beauty Group's overall GF Score™ is 41/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Adore Beauty Group (ASX:ABY), the current Gross Margin % is 34.98% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Adore Beauty Group (ASX:ABY) Overvalued in 2026?
Based on GuruFocus' analysis, Adore Beauty Group stock appears to be undervalued.
The current stock price of A$0.30 is trading 72.7% below its estimated GF Value™ of A$1.08.
GuruFocus considers Adore Beauty Group to be Possible Value Trap.
Key valuation signals for ASX:ABY:
Gross Margin %: 34.98% (near median its 10-year median of 33.33)
GF Value™: A$1.08 vs. price of A$0.30 (72.7% below fair value)
Industry Position: 3.5% below the Retail - Cyclical median (#590 of 1117)
No single metric tells the full story. See the ASX:ABY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adore Beauty Group Ltd is engaged in the online sales of cosmetics. It offers various products including skin care, hair care, body care, cosmetics, fragrances, oral care, and dietary supplements among others. The firm generates revenue through the sale of beauty and personal care products online. The Group has identified two distinct operating segments based on quantitative thresholds on profit or loss, encompassing the Adore Beauty and iKOU brands.
41GF Score
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