Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

This year. We're going Beyond.

Here’s why Adairs (ASX:ADH) shares are going nuts

Adairs (ASX: ADH) shares are up 13% after the company gave an update this morning.

What is Adairs?

Adairs is a home furnishings retailer that opened its first store in Victoria in 1981. Around 90% of Adairs’ range that is sold is private brand. Adairs has over 160 stores in Australia in five formats: Adairs, Adairs Homemaker, Adairs Kids, UHR and Adairs Outlets.

The impressive update

After COVID-19 caused stores to shut, Adairs said that all stores are now open with increased safety measures for customers and staff. With all stores having now been open for at least two weeks, the company gave a trading update to 14 June 2020.

In the FY20 second half to 14 June 2020, stores have seen a 5.3% increase in like for like sales, online sales have grown 92.6% and total like for like sales were up 27.4%. The store sales are provided on a store by store, daily basis, only open stores have been included. Mocka sales, which is 100% online, were up 52.1%.

In terms of total FY20 year to date sales, like for like (open) store sales were up 3.5%, online sales were up 64% and total like for like sales were up 15.7%.

Adairs is now expecting FY20 total sales to be between $385 million to $390 million. However, the company said that there is elevated uncertainty for the medium term.

Nick Scali Managing Director and CEO Mark Ronan said: “Our omni channel strategy and focus on the home decorating and furnishing category has served us well during this period were our customers have spent significantly more time at home.

Mr Ronan said that both Adairs and Mocka have remained disciplined on inventory and margin management.

Adairs has recovered almost all of the lost ground from the COVID-19 selloff. It still could be a decent buy if this growth rate continues, but it’s very hard to say if it will or not with the economic uncertainty.

Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned. 

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW or entering your email below.

Note: the report is 100% free.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW.

Note: the report is 100% free.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Rask Media’s Ultimate BNPL Sector Report

Afterpay, Zip, Sezzle… is this the opportunity of a lifetime? Or is BNPL a ticking time bomb? This 7,500-word analyst report takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

Enter your email below to access this report for free, including the names, ticker codes and analysis.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.