- Homewares retailer Adairs (ADH) sees its net profit increase 80.7 per cent to $63.7 million over FY21 due to the renovation boom caused by the pandemic
- While lockdowns impacted in-store performance and caused store closures, Adairs grew its online sales which represent $187 million of the total sales
- Group sales were up 28.5 per cent to $499.8 million, with online sales representing 37.4 per cent of those sales
- On the market today, Adairs is up 2.98 per cent and is trading at $3.80 per share at 12:50 pm AEST
Adairs (ADH) has seen its statutory net profit increase 80.7 per cent to $63.7 million over FY21 due to the renovation boom caused by the pandemic.
The furniture and homewares retailer experienced higher demand during the COVID-19 pandemic as people have had more time to update and refurbish their homes.
The homewares retailer’s underlying net profit also rose 101.5 per cent to $75.4 million.
While lockdowns did impact in-store performance, especially Melbourne stores which were closed for 99 days and account for 25 per cent of Adairs’ network, online sales grew.
Group sales were up 28.5 per cent to $499.8 million, with online sales representing 37.4 per cent of those sales and totalling $187 million. Group sales across its digital platforms now represent 48 per cent of total sales.
Managing Director and CEO, Mark Ronan, commented on the yearly performance.
“The continued growth in our online channel, has long term benefits for us as more of our customers shop across both channels. I am particularly proud of how our team has responded to the challenges caused by the pandemic which continues to have a significant impact on our business.”
Additionally, the positive earnings and its strong cash position of $26 million and no bank debt, Adairs has declared a final fully franked dividend of 10 cents per share. This takes the total dividend payout for the year to 23 cents.
Adairs chose to give back its JobKeeper wage subsidiary to the Australian Government due to its successful year.
The company has been supporting Orange Sky, an outreach organisation providing free laundry, shower services and conversations with people experiencing homelessness across Australia and New Zealand.
Over the 2021 financial year, Adairs contributed over $330,000 to Orange Sky which, together with its volunteering efforts, provided 8733 washes, 5001 hot showers and 9184 hours of conversation.
On the market today, Adairs was up 2.98 per cent and is trading at $3.80 per share at 12:50 pm AEST.