SkinKandy’s maiden full-year result beats Prospectus across the board
In its FY26 full-year results presentation delivered in August 2026, SkinKandy outlined its first annual result since listing on the ASX on 25 May 2026, covering the financial year ended 4 July 2026. The company reported pro forma revenue of $90.2m, up 29% on FY25 and 2% ahead of Prospectus forecast, alongside pro forma net profit after tax (NPAT) of $9.0m, a 41% rise on FY25 and 5% above the Prospectus forecast of $8.6m.
Positioned as Australia and New Zealand’s leading piercing specialist, built on certified piercers, safety standards and premium body-safe jewellery, the result was presented by Chief Executive Officer Dain Friis and Chief Financial Officer Carl Larzabal. Delivering ahead of the numbers the company listed on offers an early credibility signal for a newly listed stock.
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FY26 financial performance: growth from two engines
The result was driven by both new stores and like-for-like (LFL) growth. SkinKandy opened 22 stores during FY26, taking the network to 109, while the existing network delivered LFL growth of 9.6%, ahead of the Prospectus forecast of 8.1%.
Margin expansion was a defining feature of the year. The EBIT margin lifted to 15.3% (from 14.1% in FY25), while EBITDA rose 41% to $24.6m, supported by operating leverage as cost of doing business (CODB) fell approximately 3 percentage points to 62% of revenue. Gross profit margin held steady at 89.2%, in line with the Prospectus forecast of 89.3%.
The balance sheet remained a highlight. SkinKandy ended the year debt-free with $13.8m in cash reserves ($7.8m cash plus $6.0m in term deposits) and recorded pro forma cash conversion of 101%.
| Metric | FY26 | FY25 | Change | vs Prospectus |
|---|---|---|---|---|
| Revenue | $90.2m | $70.1m | +29% | +2% |
| EBITDA | $24.6m | $17.5m | +41% | +5% |
| NPAT | $9.0m | $6.4m | +41% | +5% |
| EBIT margin | 15.3% | 14.1% | +1.2pts | +0.2pts |
| Underlying EPS | 9.33c | 6.75c | +38% | — |
All figures above are presented on a pro forma basis. Statutory NPAT was $0.6m, with the reconciliation reflecting IPO costs and other one-off adjustments.
Four years of compounding growth
The presentation set out the FY23 to FY26 trajectory across four measures:
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Stores: 50 → 109 (30% CAGR)
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Revenue: $38.6m → $90.2m (33% CAGR)
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EBIT: $5.0m → $13.8m (40% CAGR)
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NPAT: $3.4m → $9.0m (38% CAGR)
The key takeaway is that earnings compounded faster than revenue, and revenue faster than stores. This reflects store maturation and operating leverage doing the work as the network scaled.
Why the piercing-led model matters
SkinKandy generates revenue across three streams. Piercing services account for approximately 52% of revenue and serve as the demand anchor, with fashion jewellery contributing around 39% as attached and repeat revenue, and aftercare products making up roughly 9% by protecting piercing outcomes.
Because demand is piercing-led rather than product-led, the jewellery range carries measured exposure to seasonal trends and a low markdown requirement.
The operating platform scaled alongside the network. At year end, SkinKandy had 770 SK Certified piercers (trained in-house, up 22% on FY25) and 1.1m KandyClub loyalty members.
The presentation noted that most first-time customers engage with SkinKandy through piercing and then return for further piercings and jewellery purchases, supported by the trust and value created through service, product range and expertise, compounding store economics over time.
Group priorities: the roadmap to 180–210 stores
The presentation confirmed that the Group’s strategy remains as described in the Prospectus, with all three initiatives reported on-track.
The first initiative is expanding the ANZ network toward a long-term target of 180 to 210 stores, from 109 today, through disciplined site selection across strip, mall, CBD, metropolitan and regional locations. The second is improving store unit economics and growing the online channel, with maturation of newer stores identified as the primary margin lever, alongside premiumisation and investment in digital booking and CRM.
The third initiative is entering international markets beyond ANZ, with first stores in the next international market planned for H2 FY27. Management applied a market selection framework assessing whitespace, centre structure and regulatory pathway, with USA and South Africa progressing well and South Africa showing promise as the potential first market. The presentation preserved that New Zealand is considered the Group’s first international market.
International entry was described as overhead-light and funded from operating cash flow, offering a long runway of new-store growth plus a phased international option.
Trade update: strong start to FY27
In the outlook section of the presentation, management noted that strong FY26 performance had continued into FY27, with trading results unaudited. Revenue across the first 7 weeks of FY27 was up 22% versus the prior corresponding period.
On the roll-out, 4 stores have opened in FY27 to date, with a 5th (Woodgrove, VIC) opening in the final week of August 2026 to reach 114 stores, plus 12 further new store leases approved. The Group is on track to open 10–14 new stores in the first half of FY27, and is guiding 18–20 new stores in FY27 (excluding international) plus 5–7 refurbishments, relocations and upsizes.
The new stores opened in FY27 to date are:
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St Lukes, NZ (opened July 2026)
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Tauranga Crossing, NZ (opened August 2026)
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Traralgon, VIC (opened August 2026)
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Capalaba Park, QLD (opened August 2026)
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Woodgrove, VIC (opening late August 2026)
Gross margin was reported consistent with FY26 across the period, and existing-store maturation was confirmed as tracking in line with expectations. International workstreams were noted as progressing toward H2 FY27, with a modest negative near-term earnings contribution flagged. Going forward, the company intends to report LFL growth on a half-year and full-year basis only.
The investment takeaway
SkinKandy presented as a debt-free, cash-generative retailer that beat its Prospectus forecast in its first year as a listed company, supported by a proven repeatable roll-out engine, margin expansion from operating leverage, and dual growth runways in the form of an ANZ store target and international optionality. The standout numbers included NPAT up 41%, cash conversion of 101%, $13.8m in cash and no drawn debt. Early FY27 momentum, with revenue up 22% across the first seven weeks, points to a continuation of that trajectory.
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