How did the Adairs (ASX:ADH) share price respond last earnings season?

The homewares retailer will be looking for another year like last year when it releases its FY21 earnings tomorrow.

| More on:
two people hold a sheet above their head while making a bed in a room featuring homewares.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors will be hoping the Adairs Ltd (ASX: ADH) share price will react the same as it did last reporting season.

The homewares retailer was a market darling last year as many Australians were ordered to stay at home.

Let’s take a look at how the Adairs share price responded last earnings season.  

Here’s how the Adairs share price responded last year

The Adairs share price bolted more than 17% after releasing its full-year results for FY20.

Shares in the retailer closed 10% higher as investors digested the company’s performance.

For FY20, Adairs reported a 110.5% surge in online sales of $124.2 million, which contributed 34.8% to total sales.

Overall, total sales for the company were up 12.9%, with in-store sales struggling during the pandemic.

Adairs also reported a 39.7% surge in underlying earnings before interest and tax to $60.7 million.

For FY20, the retailer also reported a 19% jump in statutory net profit after tax of $35.3 million.

The company’s management highlighted the role of the pandemic in driving demand to its online platform.

For FY20, Adairs rewarded shareholders by declaring a final dividend of 11 cents per share, fully franked.

Snapshot of the Adairs share price

Adairs is a soft furnishings and homewares retailer that operates in Australia and New Zealand.

In addition to more than 160 physical stores, the company also has a strong online presence.

The Adairs share price has been relatively subdued in 2021 although is currently 12% higher since the start of the year.

After hitting a record high of $4.97 a share in late February, the Adairs share price has given back much of its gains. At the time of writing, it’s sitting on $3.70.

As well as bringing forward the settlement of its Mocka acquisition, the Adairs share price has also battled against negative broker coverage.

Regardless, the company’s share price still offers investors a decent dividend yield.

After reporting a solid set of results in its half-year report earlier this year, the retailer also declared an interim dividend of 13 cents per share.

Adair’s potential dividend was recently acknowledged by noted broker Goldman Sachs.

According to a recent note from the broker, analysts cited the company’s strong market position and omnichannel presence.

Analysts also forecast Adairs to pay a fully franked dividend per share of 26 cents in FY21.

Adairs is scheduled to release its financial results for FY21 tomorrow.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Retail Shares

woman lays on floor with laptop and looks anxious while using credit card

Up 40% in a month, is it true ‘times are changing’ for the Kogan share price?

What’s been driving Kogan shares lately?

Read more »

three boxers, two men and a woman, stand in their training wear with fists raised in a fighting stance with serious looks on their faces against a background of a boxing gym.
Retail Shares

Could these devastated ASX shares make a roaring comeback?

At the intersection of technology and retail, e-commerce stocks have plummeted this year. Is it safe to buy or is…

Read more »

An older couple come together in their warm heated home with fire cracker sparklers.
Retail Shares

50% off: Why I think this ASX All Ords share could be a sparkling buy

With its share price cut in half this year, there are three reasons why I like this ASX retail share.

Read more »

A businessman slips and spills his coffee.
Share Fallers

Adore Beauty share price slips 12% following ASX speeding ticket

What went down with Adore Beauty on Wednesday -- other than its share price.

Read more »

Three happy shoppers.
Retail Shares

Why are ASX 200 retail shares having such a stellar run today?

ASX 200 retail shares are on fire today. What's put a rocket under this ASX 200 sector?

Read more »

A young woman in a shop hands her credit card to the cashier
Earnings Results

Super Retail Group share price jumps 8% on soft FY22 results

The retail group has announced mixed results to the market this morning.

Read more »

A smug executive woman wearing glasses and red lipstick blows a kiss to herself as she takes a selfie in a cafe feeling happy about the Adore Beauty share price going up today
Retail Shares

Why is the Adore Beauty share price rocketing 19% on Tuesday?

Could earnings from its peer be behind the stock's gain?

Read more »

A young woman does her Christmas shopping online in her lounge room at home with a Christmas tree in the background.
Retail Shares

Kogan share price drops amid warehousing legal battle

A warehouse legal battle is the latest headache for Kogan shareholders.

Read more »