Adairs puts retail concerns to bed with comfy online growth

Adairs puts retail concerns to bed with comfy online growth

Bedding retailer Adairs (ASX: ADH) improved its online sales in the first half of 2019 and notched an uptick as a result.

During the first half online sales contributed 15 per cent of Adairs' total sales, with sales via the company's online store up 42 per cent to $24.3 million.

Overall sales were up 10.6 per cent to $164.4 million from the company's 166 total stores plus its online shopfront.

The company opened four new stores during the half, upsized two, refurbished four and closed five including three of its Myer concession stores.

The company saw its gross profit increase by 11 per cent during to $100 million, whilst NPAT rose by 9.1 per cent to $14.9 million.

Managing director and CEO Mark Ronan says he is confident that the growth seen in the half will continue into the future, especially considering the strength of Adairs' online offering.

"We are confident that our strategic priorities will continue to deliver profitable growth," says Ronan.

"Another terrific online result combined with further progress in our category expansion strategy delivered a 9.1 per cent increase in our net profit after tax to $14.9 million for the half."

In New Zealand sales grew 30 per cent on the prior year which Adairs says was a result of improving its supply chain, reworking its price points to suit the New Zealand customer, and building further brand awareness in the country.

The board has declared an interim dividend of 6.5 cents fully franked, up 18 per cent from 1H18.

In the first seven weeks of the second half Adairs says it has already seen sales growth of 7.1 per cent.

The company expects to continue to generate sales growth during the rest of FY19, and will add two to three new stores.

Shares in Adairs are down 4.66 per cent to $1.94 per share at 11.32am AEDT.

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

Federal Court finds Google misled consumers on data collection

Federal Court finds Google misled consumers on data collection

The Federal Court has found Google misled consumers about persona...

Mayne Pharma breakthrough as FDA approves new contraceptive with plant-based estrogen

Mayne Pharma breakthrough as FDA approves new contraceptive with plant-based estrogen

A bet made by Mayne Pharma (ASX: MYX) in 2019 has paid off today ...

Douugh targets Gen Y & Z investors after Goodments acquisition

Douugh targets Gen Y & Z investors after Goodments acquisition

Listed neobank and AI-driven wealth management app company Douugh...

Zip Co raises $400 million for international expansion

Zip Co raises $400 million for international expansion

Zip Co (ASX: Z1P) has priced $400 million of senior convertible n...