Adairs continues with international expansion plans
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Bedding retailer, Adairs, announced it will continue its international expansion next year and will roll out new stores in New Zealand and launch an international website.
Mark Ronan, managing director and CEO, stated after the successful opening of their store in New Zealand, the company is looking into opening up to two additional stores in the country.
Ronan said the company is also looking to deliver an international website in 2018.
“Adairs has considerable opportunity to grow inside and outside of Australia and we will continue to assess these opportunities over the coming year,” he said.
Ronan said Adairs will also continue to invest in their product team by adding resources to ensure that they “can deliver great product to customers.”
“As I reflect on the lessons of the last 12 months, it has served to enhance my confidence that our strategy is sound, and our results will be most influenced by our successful execution of this strategy, rather than matters beyond our control,” he said. “‘Product, product and product’ refers to our product differentiation, range optimisation and merchandise planning strategy. Adairs is a product and design led business. Great product is critical to our success.”
The company has posted a seven per cent increase in total sales for FY17, like-for-like sales, however, finished down 1.4 per cent.
The company’s online sales continued to grow with investments in this area seeing second half sales up 41 per cent on the prior year. Despite growing total sales, Adairs’ NPAT result was well down on the prior year, with the large majority of this decline coming in the first half.
Michael Butler, chairman of Adairs also addressed the ASIC infringement notice, denying the allegation asserting the retailer “has complied with its continuous disclosure obligations at all times.”
“Nevertheless, your Bboard considered that it was in the best interests of Adairs to pay the penalty of $66,000 to enable the management team to focus on the operations of the business and avoid the anticipated cost and management diversion of defending this allegation,” he said.
“Adairs is committed to keeping our shareholders fully informed.”
Questions & Answers
Q.Where does Adairs plan to expand its physical store presence next year?
Where does Adairs plan to expand its physical store presence next year?
Adairs plans to roll out new physical stores in New Zealand next year. This follows the successful opening of their first store in that country, with up to two additional stores being considered.
Q.What is Adairs' strategy for differentiating its products from competitors?
What is Adairs' strategy for differentiating its products from competitors?
Adairs' strategy is focused on 'product, product and product,' which refers to product differentiation, range optimisation, and merchandise planning. They aim to deliver great product to customers.
Q.What was the company's financial performance like for the last fiscal year?
What was the company's financial performance like for the last fiscal year?
For FY17, Adairs posted a seven per cent increase in total sales, although like-for-like sales were down 1.4 per cent. Online sales grew significantly, but NPAT was well down on the prior year.
Q.Why did Adairs pay the $66,000 penalty to ASIC?
Why did Adairs pay the $66,000 penalty to ASIC?
Adairs paid the penalty to allow management to focus on business operations. The board believed it was in the company's best interest to avoid the cost and diversion of defending the allegation, despite denying any wrongdoing.
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