Homeware retailer Adairs says its sales growth has moderated during the first half of the fiscal year, as the company reduced the frequency and intensity of promotional activity. 

Sales at Focus on Furniture slowed after a promising start to the year, with continued discounting leading to lower-than-planned profits. 

The group’s Mocka brand maintained strong sales momentum, with customers responding well to new products.

Adairs said that the next 10 weeks will be critical, accounting for around 55 per cent of half-year sales, with major events including the Linen Lover Sale, Black Friday, Christmas and Boxing Day trading still to come. 

The company said the half-year results would depend heavily on performance during these peak periods.

For the first half of the fiscal year, the company expects group sales of between $319.5 million and $331.5 million, compared with $310.5 million in the same period last year. 

The company expects its group gross margin to be between 59.0 and 59.5 per cent, compared with 59.9 per cent a year earlier.

For the Adairs brand, sales are expected between $225 million and $232 million, with gross margins of 61.4 to 61.9 per cent.

The company expects its Focus on Furniture sales to be between $60 million and $63 million, with margins between 50.2 and 50.7 per cent.

The group’s Mocka brand is projected to reach between $34.5 million and $36.5 million in sales, with gross margins of 58.6 to 59.1 per cent.