Bedding and homewares retailer Adairs has reported a 10 per cent lift in group sales in FY23 with the Focus on Furniture brand performing well.
For the year to June 25, group sales achieved $621.3 million, up 10.1 per cent while tax-paid profit reached $37.8 million and underlying EBIT fell 16.4 per cent to $63.9 million.
Adairs’ sales were up 2.9 per cent to $430.8 million driven by a 7 per cent increase in-store sales while online sales fell 6 per cent however accounted for 27.1 per cent of total sales.
A new Adairs brand website was launched in November last year and two stores were opened, four stores were upsized, two refurbished and three closed.
Focus on Furniture sales grew 5.3 per cent to $141.9 million despite industry-wide supply chain headwinds which prevailed for much of the year.
Mocka sales fell 24.1 per cent to $48.6 million as customers returned to in-store shopping and the brand moved on from FY22 operational issues and improved customer confidence by enhancing product design and quality.
Mark Ronan, MD and CEO of Adairs Limited, said this year’s sales performance “reflected” a strong product offering across all three brands.
“In a trend seen by virtually all retailers, sales slowed towards the end of the year as rising interest rates and broad cost of living pressures saw households tighten their budgets.
“In a tougher trading environment, the combination of exclusive products, engaged customers, attractive price points and strong service culture sees us well placed to maximise sales in the coming year.”
For the first seven weeks of FY24, group sales fell 8.9 per cent while the company has continued to implement material cost reduction initiatives that seek to manage the business amidst the anticipated trading environment.
- Further reading: Supply chain disruptions impact Adairs’ profit