SkinKandy: FY26 earnings lift 41% as store growth outpaces forecast

The SkinKandy Ltd (ASX: SK1) share price is in focus as the company reported pro forma revenue up 29% to $90.2 million and pro forma net profit after tax up 41% to $9.0 million, both ahead of Prospectus forecasts.

What did SkinKandy report?

• Pro forma revenue of $90.2 million, up 29% on FY25 and 2% ahead of Prospectus forecast
• Pro forma net profit after tax (NPAT) of $9.0 million, up 41% on FY25 and 5% ahead of forecast
• Pro forma EBITDA of $24.6 million, up 41% on FY25 and 5% ahead of forecast
• Like-for-like revenue growth of 9.6%, ahead of Prospectus forecast of 8.1%
• 22 new stores opened, expanding the network to 109 across Australia and New Zealand
• Net cash at year end of $13.8 million with no drawn debt

What else do investors need to know?

SkinKandy surpassed both statutory and pro forma targets set out at its IPO. Cost management was notable, reducing the cost of doing business from 65% to 62% of revenue, which helped drive EBIT margins higher.

Statutory NPAT came in at $0.6 million, swinging from $8.1 million the previous year but remaining ahead of the Prospectus forecast. The company funded growth without taking on new debt, maintaining a strong cash position backed by term deposits.

The group ended the period with 109 stores after opening 22 new locations, and has already added four more in early FY27. Store rollouts and a disciplined retail approach are central to its steady expansion.

What did SkinKandy management say?

CEO Dain Friis said:

FY26 was an important year for SkinKandy. We listed on the ASX in May and have delivered results ahead of the forecasts included in the Prospectus. Pro forma revenue was $90.2 million, up 29% on FY25, and pro forma net profit after tax was $9.0 million, up 41% on FY25.

Two things drove the result. We opened 22 new stores, taking the network to 109, and the stores we already had grew like-for-like revenue by 9.6%. That combination is what we care about most. The roll-out is repeatable and the existing store network keeps improving.

We now have more than 770 SK Certified piercing specialists, every one of them trained in-house. That in-house training program is what lets us open stores at this pace.

Gross margin held at 89% and our cost of doing business came down to 62% of revenue from 65% last year. We keep the business improving through constant product innovation, development of our piercing offer and a measured approach to promotional tactics. That discipline is a large part of why earnings grew faster than revenue, and revenue grew faster than the store network.

We enter FY27 with the same plan we set out at the IPO: build towards 180 to 210 stores across Australia and New Zealand, keep improving the economics of every store, and take our first steps into a second international market.

Our people are the business, and they held up well in a year of change and acceleration of our growth plans and strategy. I am very proud of what this team has achieved while simultaneously taking the business through an IPO. Thank you to all of them.

What’s next for SkinKandy?

SkinKandy is pushing ahead with its growth strategy, aiming to increase its store count to between 180 and 210 across Australia and New Zealand. Plans are also progressing to enter a second international market, with management targeting openings in the second half of FY27.

Early FY27 results are encouraging, showing 22% revenue growth over the prior comparable period. The company continues to trial service innovations and build its annual events, such as Piercing Culture Week. Management says the business remains on track with store openings and is focused on improving store economics and customer experience.

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