Adairs says comparable sales have risen 27.4 per cent during the second-half of its financial year, after excluding the five weeks of store closures due to COVID-19.

The bedding and homewares chain said the closures mean actual sales revenue will be much lower, but the comparison shows business fundamentals are strong.

Sales at Adairs’ 169 stores across Australia and New Zealand rose by 5.3 per cent on a like-for-like basis for the 24 weeks to June 14, removing the five weeks of closures.

Online sales, boosted by the acquisition of online furniture and decorations retailer Mocka last year, surged 92.6 per cent as shoppers turned en masse to ecommerce during the pandemic.

Adairs’ 160 Australian stores postponed trading from March 30 and opened progressively in May, while the six New Zealand stores did likewise from March 24 to May 14.

The company now expects full year sales to be in the range of $385 million to $390 million.

It had reported sales of $344.4 million last year.

Shares in the company jumped on the news, and were up 12 per cent at $2.34 by 1330 AEST.

Chief executive Mark Ronan said both stores and online channels had seen strong sales since the shops reopened.

The company said it is working on combining its distribution centres to a single one in Melbourne, which will cut expenses.

Adairs’ update comes after online-only rival temple Temple & Webster on Thursday reported a 90 per cent improvement in second-half revenue to date. Temple & Webster’s full year revenue to May 31 was up 68 per cent compared with the same period last year.

Online purchases of homewares and furniture have been growing in Australia in recent years, with the trend catching up from the US and European markets.

Source Article