Adairs Ltd.

ADH Details

Shares of Adairs Limited (ASX: ADH) have moved up 34.2% on 12July 2017, after the announcement of FY17 earnings guidance, based on a strong final quarter. Total sales for H217 are expected to grow by 8.3% yoy to $140.4 million, while full year sales are $264.9 million.  Underlying EBIT is expected to be between $18.5 and $19.0 million (H216: $19.2 million) for the same period. Following a poor start to the second half, Adairs sales performance continued to improve as the second half progressed and new product arrived in store.


Quarterly sales performance; (Source: Company reports)

The business continues to make changes to address the issues that led to the disappointing first half results. The issues observed in key bed linen category in the first half of FY17 have largely been resolved, with the category again delivering like for like sales growth vs pcp in the second half. Adairs continued to see higher than usual sales variability across our store formats, center types, product categories and geographies. This is perhaps symptomatic of a more subdued retail environment, but also indicates further room to improve our product and store execution. Given the sharp move up in stock price, we give a “Hold” recommendation on the stock at the current market price of $1.27


ADH Daily chart; (Source: Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.