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Adairs expects “outstanding” first half to eclipse full-year earnings

With three weeks left in its first-half trading period, Adairs has released an early trading update for the first 23 weeks of the half, as well what it expects to see come 27 December.

According to the bedding business, like-for-like in-store sales rose 17.3 per cent during the period, while online sales grew 99.7 per cent – representing 39 per cent of total sales for the 23 weeks, compared to 20 per cent last year.

And, consistent with the business’ focus of growing profitability over the last 18 months, gross margins in both Adairs and Mocka have stayed well above last year’s levels.

That said, the business is expecting an “outstanding” result for the first half according to CEO and managing director Mark Ronan.

Ronan noted that group sales for the first half are expected to reach up to $245 million compared to last year’s $179 million result, and underlying group EBIT could skyrocket to $66 million from $23 million for the first half last year – and above the $60.7 million earned for the full year.

“Whilst we have clearly been a Covid-19 beneficiary, the result has been delivered through the team’s strong execution against our articulated business strategies and the fundamental strength of our vertical business model,” Ronan said.

“Our model allows our customers to shop with us when, where and how they want whilst simultaneously delivering attractive financial results.

“For the group to achieve an expected EBIT outcome in six months that exceeds the EBIT of the full prior year, which was itself a record for the company, is a testament to the strategic health and operational excellence of our business.”

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