Home furnishings group Adairs (ASX: ARH) is back on track at the end of FY18, posting record results following a year of strong online performance and new store additions.
The company lifted sales by 18.8 per cent to $314.8 million on the back of opening eight new stores, upsizing five existing stores and refurbishing one.
Gross profit also increased by 20.9 per cent to $189.6 million.
Adairs managing director and CEO Mark Ronan says the company found its footing again during the financial year.
"The strong result in FY18 shoes that our business is back on its growth trajectory," says Ronan.
"Our focus on operations excellence has ensure we delivered what our customers wanted, a fashionable well-co-ordinated product range via a superior retail and online shopping experience."
The group's online offering was up 75.1 per cent to $41.5 million and now comprises 13 per cent of total sales at Adairs.
Adairs' expansion into New Zealand wasn't as comfortable, with its results "lower than expected". The company says initiatives are in place to address issues in the region but anticipates the sector will breakeven in the second half of FY19.
The company expects sales to increase further during FY19, releasing its guidance between $345 million and $360 million.
Shares in Adairs are up 12.07 per cent to $2.60 per share at 10.20am AEST.
Business News Australia
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