Bedding retailer Adairs has issued its second trading update in as many months, delivering the news that like-for-like sales growth has hit double digits in the first weeks of FY18.
LFL sales soared to 10.4 per cent in the six weeks to 13 August, following 9.1 per cent growth in the prior six weeks, turning around three consecutive months of negative growth through Q2 and Q3 in FY17.
Still yet to book his full year result with the market, Adairs CEO Mark Ronan chalked up the increasing momentum to the company’s new line of up-market manchester, which continues to be a hit with customers.
“Adairs improved sales performance over the last 10 weeks provides us with increased confidence that the measures taken in the first half of FY17 were successful in re-positioning the business, including our new product offering resonating with our customers,” he said.
He did, however, signal that the company expects growth to moderate somewhat through FY18, which will be further discussed at the company’s full year result on 28 August.
Ronan’s update was received well in early Thursday trading, with Adairs’ share price up 6 per cent, adding to the more than 50 per cent rise since it signalled the trading turnaround in July.