Pureplay online beauty retailer Adore Beauty says returning customers have largely contributed to the business’ growth in the first quarter, although sales don’t reflect the same.

In a trading update based on unaudited accounts, the business registered $45.4 million in sales as momentum picked up in the two most recent quarters, however, it’s down 29 per cent compared to the previous corresponding period.

Loyalty program members were instrumental in generating sales — contributing nearly 60 per cent — while the mobile app contributed 18 per cent. The active customer base fell 9 per cent to 791,000 — albeit it has risen 12 per cent on a two-year basis.

Adore Beauty CEO, Tennealle O’Shannessy, said the results were a “solid start” to the financial year despite navigating a competitive trading environment.

“Adore Beauty’s valuable returning customers are a key differentiator for the business contributing 70 per cent of all revenues and providing a high level of revenue sustainability.

“Year-on-year comparisons in isolation simply reflect the cycling of two consecutive periods of strong growth when part or most of the country was in lockdown.”

The business also launched its second own brand label, AB Labs, and onboarded new international brands including Dior and Huda Beauty in this quarter.

It has commenced expanding its New Zealand operations, partnering with Laybuy, Zip Pay and Afterpay during the quarter.