The bedding and homewares retailer met for its Annual General Meeting to discuss its FY18 results and plans to continue focusing on online revenue in FY19.
According to Adairs’ AGM presentation, online sales grew by 75 percent in the last financial year, equating to $42 million in revenue. Online sales now equate to 13 percent of the company’s total sales. According to CEO, Mark Ronan, e-commerce revenue will be a “key contributor to future growth” and a “key engagement channel” for its customer service and experience metrics.
“Online is an integral component of our business… Our customers use the online environment to research, coordinate, be inspired by, compare, communicate and shop with us across both our store and online channels,” Ronan said.
“We remain committed to delivering a seamless and flexible customer experience regardless of how, when and where our customers choose to shop with us.
“We expect to see our continued investment and focus on improving our digital presence and execution to complement and enhance our in-store experience,” he said.
As previously indicated at a meeting in Queensland earlier in the month, Adairs is invested in improving its omnichannel shopping experience, with plans in place to increase its product range, improve its delivery network and create a more seamless, cross-channel experience. Ronan is confident this focus will result in a further 30% growth in online sales in the next financial year.
Looking at the company’s broader results, like-for-like sales in FY18 reportedly increased by 19 percent to $315 million, while gross profit experienced a boost of 21 percent, closing at $190 million. The company also reported a “record EBIT result”, and reduced its net debt from $15.4 million to $12.2 million.
However, the company did have a tough quarter in regards to its cross-border approach, as New Zealand recorded disappointing results.
“Supply chain challenges impacted our ability to ensure we had the right stock in the right place at the right time, resulting in a poor trading result over the year,” Ronan said in his presentation.
“Over the second half, we made significant changes across the supply chain and believe we are now in a better position to deliver an improved FY19 result.”
In FY19, Adairs is predicting sales of $345 to $360 million, with a gross margin of 59 to 61 percent.
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