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Adairs’ growth remains stable in the first half

(Source: Facebook)

Bedding and homewares retailer Adairs reported that the business continued to perform well despite Covid-related disruptions in its first half results. 

Group sales were estimated at $241.8 million with Adairs contributing $131.7 million, Focus on Furniture $12.5 million and Mocka a further $34.3 million. 

Underlying EBIT was estimated at $32.9 million while net profits after tax came to $17.6 million. Online sales contributed 42.6 of total group sales, or $97.6 million. 

Like-for-like sales for the group were up a marginal 2.7 per cent, impacted by Covid-related store closures which the business estimates cost it $35 million.

Likewise, Linen Lover memberships grew over the past year and is now approaching 1 million active members. The brand also opened two new Adairs stores and upsized four old ones. The business’ cost of doing business was impacted due to poor rent rebates in the first half and extended store closures and higher salary costs to support team members. 

Mark Ronan, CEO and MD of Adairs Limited said: “The first half brought significant one-off operational disruptions related to Covid which impacted our portfolio of brands and our overall financial results.

“The finalisation of Mocka earn-out allowed us to build our team support, our growth strategies as we added to our portfolio of vertical omni-channel retail brands by acquiring Focus on Furniture,” he said.

The brand’s national distribution centre in Melbourne was completed last year in August. Inventory from the other three warehouses was moved to the new premise and it commenced operations in September. 

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