RETAILERS had it tough last year. Volatile industry conditions and increased competition crippled even some of the country's most established players.
To name a few; Oroton, The Reject Shop, SurfStitch and Myer were beset by troubles while stories of success in the industry became somewhat of a rarity.
Today in a trading update, homewares retailer Adairs (ASX: ADH) has kicked off 2018 in defiance of the downward trend.
Adairs expects its total sales will reach $149.1 million for the first half, representing a 19.8 per cent increase on the prior period.
The company also predicts its earnings before interest and tax (EBIT) will hit $21-21.5 million, almost doubling its results from 1H17.
Adairs CEO Mark Ronan says the company made responsive changes to its business last year which helped deliver stronger products in the market.
"This product offering together with our ongoing focus on retail execution both in store and online has delivered a pleasing first half," says Ronan.
"We believe we are in a good position to drive sales growth over the second half."
Following a strong start to the year, Adairs has upgraded its full year sales guidance to $300-310 million from its previous $290-305 million figure.
The company also upgraded its FY18 EBIT guidance to $40-44 million.
ADH shares are up 5.4 per cent at $2.03 at the time of writing (10:35am AEST), and the company says it will be releasing its audited 1H18 results on 26 February.
Business News Australia
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