Australia's Adairs plunges on downbeat trading update; UBS trims PT

Adairs

23/06/2025 06:58

Updates

** Adairs ADH.AX plunges 20.4% to A$2.055, lowest since April 10

** Stock eyes weakest trading session since late January 2022

** Home furnishing retailer sees H2 FY25 group underlying EBIT of A$20.5 mln-A$24 mln ($13 mln-$15.4 mln) vs H1 FY25 underlying EBIT of A$33 mln

** Attributes lower earnings to elevated promotional activity in H2, coupled with weaker effective Australian dollar

** UBS sees softer gross margin performance driving decline in EBIT instead of higher promotional activity

** Cuts PT to A$2.25 from A$2.55; retains "neutral"

** More than 4.1 mln shares traded, 11.3x the 30-day avg, in stock's busiest session since August 28, 2024

** Adairs down 24.1% YTD

($1 = A$1.5608)

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))