Latest news with #Adairs'
West Australian
8 hours ago
- Business
- West Australian
Adairs' full-year earnings weighed down by promotional blitz
Home furnishings chain Adairs says it is on track to deliver record sales in the 2025 financial year, but heavy discounting to achieve this had dented margins. In a mixed trading update which sent shares down 18.4 per cent to $2.10 just after midday on Monday, Adairs said full-year sales were forecast to hit between $614 million to $618m, up from last year's $594.4m. Underlying earnings are expected to hit between $53.5m to $57m, which is flat against the $57.6m recorded last year. But the company — also behind furniture brands Focus and Mocka — said elevated promotional activity aimed at driving sales and managing stocks, alongside the weaker Australian dollar, was 'adversely impacting gross margins'. While its flagship Adairs and Mocka businesses were expected to deliver significant earnings before interest and taxes growth on last year, it would be offset by a material decline in the Focus brand, where sales remain challenging despite higher promotional activity. 'Management is evolving the positioning and execution capability of the business alongside the national store roll-out program, which is expected to accelerate in FY26,' the company said. 'Under Adairs' new leadership, significant changes are being implemented across the business, designed to reset the foundations for long-term growth.' Adairs last September named former Country Road managing director Elle Roseby as its new chief executive less than two months after she departed the scandal-ridden fashion house. Adairs is set to release its full-year results on August 27.
Yahoo
05-03-2025
- Business
- Yahoo
Adairs Limited (ASX:ADH) Stock Goes Ex-Dividend In Just Four Days
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Adairs Limited (ASX:ADH) is about to go ex-dividend in just 4 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. In other words, investors can purchase Adairs' shares before the 10th of March in order to be eligible for the dividend, which will be paid on the 3rd of April. The company's next dividend payment will be AU$0.065 per share. Last year, in total, the company distributed AU$0.14 to shareholders. Last year's total dividend payments show that Adairs has a trailing yield of 6.1% on the current share price of AU$2.28. If you buy this business for its dividend, you should have an idea of whether Adairs's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing. See our latest analysis for Adairs Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Adairs paid out 72% of its earnings to investors last year, a normal payout level for most businesses. A useful secondary check can be to evaluate whether Adairs generated enough free cash flow to afford its dividend. Fortunately, it paid out only 27% of its free cash flow in the past year. It's positive to see that Adairs's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If earnings fall far enough, the company could be forced to cut its dividend. It's not encouraging to see that Adairs's earnings are effectively flat over the past five years. Better than seeing them fall off a cliff, for sure, but the best dividend stocks grow their earnings meaningfully over the long run. Earnings growth has been slim and the company is paying out more than half of its earnings. While there is some room to both increase the payout ratio and reinvest in the business, generally the higher a payout ratio goes, the lower a company's prospects for future growth. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Adairs has delivered an average of 3.8% per year annual increase in its dividend, based on the past nine years of dividend payments. Has Adairs got what it takes to maintain its dividend payments? It's unfortunate that earnings per share have not grown, and we'd note that Adairs is paying out lower percentage of its cashflow than its profit, but overall the dividend looks well covered by earnings. Overall, it's hard to get excited about Adairs from a dividend perspective. In light of that, while Adairs has an appealing dividend, it's worth knowing the risks involved with this stock. For example, we've found 1 warning sign for Adairs that we recommend you consider before investing in the business. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
26-02-2025
- Business
- Yahoo
Adairs Limited (ASX:ADH) Half-Year Results: Here's What Analysts Are Forecasting For This Year
It's been a sad week for Adairs Limited (ASX:ADH), who've watched their investment drop 17% to AU$2.33 in the week since the company reported its half-year result. Results overall were respectable, with statutory earnings of AU$0.18 per share roughly in line with what the analysts had forecast. Revenues of AU$311m came in 2.5% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. Check out our latest analysis for Adairs Taking into account the latest results, the consensus forecast from Adairs' eight analysts is for revenues of AU$617.4m in 2025. This reflects an okay 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 17% to AU$0.22. In the lead-up to this report, the analysts had been modelling revenues of AU$619.9m and earnings per share (EPS) of AU$0.22 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts. It might be a surprise to learn that the consensus price target was broadly unchanged at AU$2.69, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Adairs analyst has a price target of AU$3.25 per share, while the most pessimistic values it at AU$2.40. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Adairs shareholders. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Adairs' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 9.9% over the past five years. Compare this to the 25 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. Factoring in the forecast slowdown in growth, it looks like Adairs is forecast to grow at about the same rate as the wider industry. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at AU$2.69, with the latest estimates not enough to have an impact on their price targets. With that in mind, we wouldn't be too quick to come to a conclusion on Adairs. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Adairs analysts - going out to 2027, and you can see them free on our platform here. That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Adairs , and understanding it should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
