Free Subscription

  • Access 15 free news articles each month

Professional

Try one month for $5
  • Unlimited access to news,insights and opinions
  • Quarterly and weekly magazines
  • Independent research reports and forecasts
  • Quarterly webinars with industry experts
  • Q&A with retail leaders
  • Career advice
  • Exclusive Masterclass access. Part of Retail Week 2021
×

Adairs earnings, profit skyrocket during first half

Adairs Group’s sales spiked 34.8 per cent in the last six months to $243 million, as customers continued to work on improving their living spaces in light of the continued Covid-19 pandemic.

Underlying group EBIT more than doubled during the period, up 166 per cent to $60.2 million, while net profit tripled – up 233.4 per cent to $43.9 per cent – driven by a 500 bps increase to the business’ gross margin.

Managing director and chief executive Mark Ronan called the results “outstanding”.

“For the group to achieve an EBIT outcome in six months equal to the EBIT of the full year in FY20, which was itself a record for the company, is something every member of the Adairs and Mocka teams can be proud of,” Ronan said.

“While Covid-19 has seen people invest more in their homes, these results highlight the benefits of investing early in our omni-channel strategy, having a passionate team, great unique product, a large and loyal customer base, and a platform that allows our customers to shop with us when, where and how they want.”

Adair’s online sales grew 95.3 per cent during the half to $62.2 million, while like-for-like instore sales rose 14.4 per cent. Furniture brand Mocka, acquired near the end of 2019, enjoyed sales growth of 44.4 per cent to $28 million.

And, while the stop-start nature of operating in Victoria has delayed the construction of the group’s upcoming national distribution centre, it is on track to launch in the first quarter of FY22.

With the business seeing such strong growth and support from customers, the board has decided to repay the $6.1 million JobKeeper wage subsidy it received during the peak of the pandemic.

Additionally, with the pandemic still progressing through Australia, the business opted not to provide guidance for the remainder of the year ahead.

You have 7 free articles.

Masterclasses are only for Professional Subscribers

Become a Professional for only $5 Already member? Login
  • Unlimited access to news,insights and opinions
  • Quarterly and weekely magazines
  • Independent research reports and forecasts
  • Quarterly webniars with industry experts
  • Q&A with retail leaders
  • Carrer advice
  • Exclusive masterclass access.Part of Retail Week 2021