Home funishing sales drop, Adairs shares are tanking

Yoshikazu Tsuno/AFP/Getty Images

Shares in Adairs fell sharply after the home furnishing retailer posted a 35.3% fall in half year profit to $8.6 million.

A short time ago, they were down 14.5% to $1.19.

The company, like other retailers, reported softer than expected Christmas trade.

Sales were up 5.7% to $124.5 million for the six months to January 1 but like-for-like sales growth were down 4%.

CEO Mark Ronan says the company understands the issues leading to the disappointing result.

“However it is too early to forecast a consistent improvement in our trading performance,” he says.

Like-for-like sales over the first seven weeks of the second half were down 2%.

“Whilst this is an improvement, and in line with our expectations, we are seeing higher than
usual sales volatility across product categories,” says Ronan.

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