Adairs Limited's performance update for FY25

Adairs (ASX:ADH), a prominent retailer in the home furnishings sector, announced a 4.8% rise in group sales for the first 16 weeks of FY25. This performance highlights the impact of strategic initiatives such as a new Warehouse Management System and store refurbishments.

Adairs Limited's strategic outlook for FY25

Adairs Limited has shown a positive start to FY25, with a 4.8% increase in group sales. This growth is driven by the Adairs segment, which saw an 8.6% rise due to the new Warehouse Management System and robust product offerings. The company is addressing challenges in the Focus on Furniture segment with refurbishments. Mocka's sales have improved, especially in Australia. Despite external challenges, the gross margin improved by 50 basis points. Adairs plans to open six new stores, with strategic events expected to drive sales. Capital expenditure is set between $13 million and $15 million, with a focus on operational efficiencies and growth.

Management insights on strategic progress

The strong sales growth in the Adairs segment reflects the successful implementation of our new Warehouse Management System and strong product offerings. We remain committed to operational efficiencies and growth initiatives, positioning us well for the remainder of FY25.