Adairs lounging comfortably on record profits and sales

Adairs lounging comfortably on record profits and sales

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.

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

Crown to cough up $12.5m towards Bergin Inquiry

Crown to cough up $12.5m towards Bergin Inquiry

Crown Resorts (ASX: CWN) has revealed it will pay $12 million tow...

$65m valuation gives Melbourne's Deliciou a plant-based protein kick for Whole Foods Market roll-out

$65m valuation gives Melbourne's Deliciou a plant-based protein kick for Whole Foods Market roll-out

When Kjetil Hansen appeared on Shark Tank in 2017, his $1.2 milli...

Treasury Wines shrugs off China woes as earnings recover

Treasury Wines shrugs off China woes as earnings recover

Treasury Wines (ASX: TWE) has shrugged off its China woes with a ...

Australia orders 25 million COVID-19 vaccine doses from Moderna

Australia orders 25 million COVID-19 vaccine doses from Moderna

Biotechnology company Moderna (Nasdaq: MRNA) has entered into a n...