Australia's Adairs hits 3-year low on FY23 forecast cut

Adairs

02/06/2023 04:31

(Updates volumes, adds estimates and comment from Adairs)
    ** Shares of Adairs Ltd  ADH.AX  tumble as much as 19.9% to
A$1.510, their lowest since May 19, 2020
    ** ADH top loser on the ASX All Ordinaries Index  .AORD 
    ** Home furnishing retailer cuts FY23 group sales forecast
to A$616 mln-A$622 mln ($417.83 mln-$421.90 mln) A$625 mln-A$665
mln
    ** Forecast below Refinitiv average estimate of A$642.5 mln
    ** Co sees FY23 group EBIT between A$62 mln and A$65 mln,
compared with A$70 mln–A$80 mln previously expected
    ** Rising interest rates and higher cost of living have
created a more subdued trading environment since April, with
lower traffic observed both in stores and online - ADH
    ** Shares post their biggest intraday pct fall since Jan.
24, 2022, and set to record 4th consecutive session of losses 
    ** About 4.3 mln shares change hands vs the 30-day average
of ~420,000 shares
    ** ADH stock down 14.3% YTD, as of last close 

($1 = 1.4743 Australian dollars)

 (Reporting by Harish Sridharan and Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))