Australia's Adairs falls most in nearly 2 years as COVID hurts earnings outlook

Adairs

23/01/2022 23:55

** Home furnishing retailer Adairs Ltd  ADH.AX  slumps as
much as 20.1% to A$3.045, its biggest intraday pct drop since
March 2020
    ** Co says https://bit.ly/3fXlxql 1H22 underlying EBIT is
expected to be between A$32 mln ($22.98 mln) and A$33 mln,
nearly half of the A$60.2 mln it recorded in 1H21
    ** Adds that pandemic-related store closures likely reduced
ADH sales in 1H22 by about A$30-A$36 mln
    ** Increase in global supply chain costs hurting gross
margins, which is expected to come in below 1H21
    ** However, added that "there is high availability of
product in distribution centres and stores across all brands
going into 2H22"
    ** ADH at its lowest since Nov 19, 2020; on track for a
second session of losses
    ** About 2.6 mln shares change hands, vs the 30-day average
of about 900,000 shares
    ** ADH down 5% this year, as of last close

     ($1 = 1.3926 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))