Adairs has today released their FY18 financial results and things are looking up for the company that dominates the linen retail space.
As all retailers feared the arrival of Amazon, the financial year results that keep pouring in seem to prove that there was nothing to fear. Adairs, who have now released their FY18 results are another key example of this as their gross profit increased by 20.9 percent this year, up to $189.6 million.
The company has reported record sales and profit results for the 2017-18 financial year, with sales up 18.8 percent to $314.8 million for the year. This substantial growth has led to strong operating cashflow and higher dividends for investors, according to the report.
Adairs Managing Director and CEO, Mark Ronan said, “the strong results in FY18 shows that our business is back on its growth trajectory.” This includes Adairs reducing their net debt by $15.4 million.
Not only have Adairs reported growth in their physical stores, they have also reported a 75.1 percent increase in online sales, up to $41.5 million with online sales now accounting for 13 percent of total sales.
Adairs have reported that their growth has come from increased transaction volume, more customers choosing to shop at Adairs and existing customers, including the growing Linen Lovers membership base, shopping more frequently. Their online growth has been a result of their online metrics, which has seen a 38 percent increase in traffic to adiars.com.au.
Adairs’ focus on operational excellence has ensured they deliver what customers want; a fashionable, well-co-ordinated product range through a superior retail and online shopping experience.
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