Adairs goes against the grain, predicts a strong first half

Adairs goes against the grain, predicts a strong first half

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Consumer data platform Lexer lands $33m Series B to further international ambitions

Consumer data platform Lexer lands $33m Series B to further international ambitions

Melbourne-based Lexer, a consumer data platform for brands and re...

Victoria returning to pre-lockdown restrictions tonight after reporting two new cases

Victoria returning to pre-lockdown restrictions tonight after reporting two new cases

Despite recording two new locally transmitted cases of COVID-19, ...

Kogan doubles profit as customer base shoots past three million

Kogan doubles profit as customer base shoots past three million

An insatiable appetite by consumers for online retailing, includi...

Needle-phobes rejoice: NeedleCalm launches in Australia

Needle-phobes rejoice: NeedleCalm launches in Australia

An innovative piece of medical technology aimed at reducing physi...