Homewares and manchester retailer Adairs has announced a 45 per cent lift in full-year net profit to a record $30.5 million.
Adairs delivered an 18.8 per cent increase in revenue to $314.8 million in a turnaround result driven by solid growth in like-for-like sales and a 75 per cent lift in online sales.
The linen retailer added eight new stores and upsized another five for the year as it continued its comeback from an all-time low of 63 cents in June 2017.
Shares in the retail group lifted eight cents, or 3.5 per cent, to $2.40 on Monday
Managing director Mark Ronan said the 14.3 per cent lift in like-for-like sales was down to an increased number of sales and existing customers shopping more frequently.
“The strong result in FY18 shows that our business is back on its growth trajectory,” he said in a statement.
Mr Ronan also foreshadowed a continuing improvement in sales in 2018/19, helped by a further increase in store numbers across Australia and New Zealand and building on online sales.
Adairs’ online channel accounts for 13 per cent of total sales and brought in $41.5 million in 2017/18.
The retailer announced a final dividend of eight cents, fully franked, up from 4.5 cents a year ago.
Adairs shares plunged in November, 2016, when the company issued a shock downgrade to expected sales, citing “missed opportunities” in the bedlinen market.
LINEN IS WINNING AS ADAIRS CLIMBS BACK
* 2017/18 statutory net profit up 45 per cent to $30.5 million
* Revenue up 18.8 per cent to $314.8 million
* Final dividend of eight cents, fully franked, up from 4.5 cents a year ago