# ADH - Adairs Limited



## System (1 June 2015)

Adairs is recognised as Australia's leading specialist retailer of manchester and Homewares. With over 100 stores nationally, the business comprises of some of Australia's best known retail brands, such as Adairs (including Adairs Homemaker and Adairs Factory Outlets), Adairs Kids and Urban Home Republic.

It is anticipated that ADH will list on the ASX during June 2015.

https://www.adairs.com.au


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## greggles (20 April 2018)

Gap up from Adairs Limited this morning after announcing a further upgrade to its FY18 earnings guidance. Between June 2017 and January 2018 the share price surged from 60c to $2.30. It's back up to $2.13 this morning after closing yesterday at $1.845.

This has got to be one of retail's better performers of late. Fantastic performance.


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## bigdog (18 May 2018)

The WILSON ASSET MANAGEMENT Group has become substantial share holder on May 14 2018 buying 10,268,272 shares 6.19% at $2.20

Catalyst Investment Managers ("Catalyst") sold 12.5 million shares in the Company after-market on
Friday, 11 May 2018, via an underwritten block trade. Following completion of the sale, the Catalyst
shareholder entities will continue to hold in aggregate approximately 40 million shares in the
Company.

Director Trent Peterson sold 11,501,142 shares for $25,264,558.63 (included as part of Catalyst Investment Managers ("Catalyst") sold 12.5 million shares.

Trent still holds 37.4 million shares






1713


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## greggles (27 August 2018)

Another strong result for ADH today with the release of their FY18 financial results. Here are the highlights:






After around four months of consolidation between $2.05 and $2.35, ADH looks like it's starting the next leg up. It's currently trading at $2.43, up 4.74% on Friday's close.


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## greggles (21 June 2019)

Well, a lot has changed since my last post in this thread.

ADH has been punished today after revising their guidance for FY19. See below.






Today's sell off may have been a bit of an overreaction in my opinion with ADH down 21.29% to $1.4325 and back to 2017 prices. I don't think the downgrade was significant enough to justify today's carnage, but perhaps there's something I'm missing?

Current prices might represent a good entry point for a long term buy and hold position for ADH optimists.


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## kenny (21 June 2019)

I think there's an adage saying the first downgrade is never the last. In this toppy market, there are investors/traders who are quite flighty I imagine and prioritise wealth preservation which isn't a bad thing.

This probably compounds the uncertainty of why the CFO resigned at the end of May and without offering a reason why the sales numbers have dropped off in recent weeks enough to warrant a revision, the market is reacting.

I agree though the reaction is overstated if the management's comments are true that the revision is only from total sales of $340 million to $345 million instead of $340 million to $355 million.


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## greggles (24 June 2019)

kenny said:


> I agree though the reaction is overstated if the management's comments are true that the revision is only from total sales of $340 million to $345 million instead of $340 million to $355 million.




ADH bouncing back nicely today as I suspected it would. Currently up 18.8% to $1.485. I honestly don't think it had further to fall in the short term and today's bounce was inevitable in the absence of any negative factors that I may not have been aware of.


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## bigdog (4 December 2019)

SP bounced big time today on asx announcement today

4/12/2019 8:29:03 AM 14  ADH Acquisition of Mocka Presentation
4/12/2019 8:28:03 AM 4 ADH Acquisition of Mocka (uploaded below)

Adairs Limited (ASX: ADH) today announced that it has entered into a binding agreement to acquire all of the shares of Mocka Limited (“Mocka”) for a notional initial enterprise value of c.NZ$80m (A$75.5m).  The agreement is subject to satisfaction of customary conditions and is expected to complete in mid-December.

Mocka is a highly efficient, vertically integrated and profitable pure-play online retailer of home and living products operating in Australia and New Zealand, with a strong track record of growth, attractive margins, and high levels of profitability and cash generation.

Founded in 2007 and family owned, Mocka sells well designed, functional and stylish products in the Home Furniture & DÃ©cor, Kids and Baby categories.







don't hold

045


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## finicky (26 January 2020)

After drawing attention to the number of ASX listed homewares retailers that outperformed the general index in 2019 (BRG, KGN, TPW. NCK) *Tony Featherstone* tipped Adairs (ADH) as offering best value in this segment for 2020. He also thinks Beacon Lighting (BLX) is worth a look. I notice from the charts that HVN and JBH also outperformed in 2019.

 Here's an excerpt from his article over at Nabtrade - published Jan 20, titled, "Adairs is shining light in homewares"

"Adairs is the pick of homeware stock at current prices. I rate its acquisition of Mocka, a pure-play online home and living products retailer in Australia and New Zealand, for $75.5 million. Adairs completed the acquisition in December 2019.
Mocka is a neat fit with Adairs. Its online strengths complement Adairs’ bricks-and-mortar business. Adairs should be able to market Mocka to a larger customer base and drive a step-change in the combined company’s online penetration rate in homeware. Done well, that could drive faster revenue growth and underpin a re-rating of Adairs in the next three years."


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## finicky (17 March 2020)

Broke my loosely applied charting rules and bought 2,000 ADH @ 1.11 today. Don't laugh, it made me feel better.

Tony Featherstone put me onto Adair when he wrote on Nabtrade what a standout sector homeware retailers had been in 2019 and he thought ADH had laggard appeal. That must have been when it was double today's price, wonder what he thinks now - probably gone on a sabbatical.

Just to replicate what I have already said on the thread 'Good ASX Stocks to Buy' (during the Wuhan Virus Crash) ..

ADH has had two directors making three decent buys on market over the last week at average prices from $1.67 - 1.70.
Intraday low today has been $1.11
Also Pendal Funds Services announced a raise in its substantial holding 10/03/20 from 5.3% - 6.5%
ADH goes ex dividend on April 1 for a 7c ff div

Held
Absolutely not a recco from me, just doing some therapy shopping.


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## Country Lad (20 April 2020)

finicky said:


> Don't laugh, it made me feel better.




Not laughing. A few days after reading this Country Lass went to the local Adairs to buy a few things to keep her amused during our staying at home stint. Thought to myself that this one may do well if others were also going to do house improvements and craft stuff.  Buy signal 25 March (probably at the same time as the @Skate "Ducati Blue Bar" if the correlation is still there) and it looks like another buy/breakout today.


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## Skate (20 April 2020)

Country Lad said:


> Not laughing. A few days after reading this Country Lass went to the local Adairs to buy a few things to keep her amused during our staying at home stint. Thought to myself that this one may do well if others were also going to do house improvements and craft stuff.  Buy signal 25 March (probably at the same time as the @Skate "Ducati Blue Bar" if the correlation is still there) and it looks like another buy/breakout today.




@Country Lad you were very close -  "The Ducati blue bar strategy" signals was on 26th March.






Skate.


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## Country Lad (21 April 2020)

Country Lad said:


> .............. and it looks like another buy/breakout today.




BreakDOWN actually, along with the market.  Stopped out this morning along with a couple of others. Back to the sidelines.


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## finicky (19 June 2020)

*ADH guidance - revenues up for FY20*
I assume sales as roughly equivalent to revenues:
FY19 rev = $340m
*FY20 rev = $385m*
I assume ebit margin will contract for FY20
Only hold 2,000 shares picked up during lockdown but will sell soon as part of general cashing up strategy for the bust ahead.




6 mth Dly


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## mullokintyre (20 August 2021)

ADH good result.
The group sales up 28%.
The best bit being that gross margins and EBIT both very much higher.
Nil debt now (thats the part i like most in any investment ATM)
Divvy of 10CPS is also attractive.
The interesting part was the split between in store sales  (up  7.4% LFL) and Digital sales (up 21%).
Digital store sales now represent  47%of total.
At this rate, digital sales will be over 50% by the next half year.
Thats a trend likely to increase.
Mick


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## galumay (20 August 2021)

Like so many companies, the difficulty is trying to work out what the future state of the business looks like and removing the noise of Covid impacts. I have looked at it more than once but never got the conviction to take a position, as you say there is a lot to like & it doesn't look too expensive.


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## mullokintyre (20 October 2021)

ADH put out a trading update.
Long store closures in NSW and Victoria have impacted sales,  though some of it was accounted for by increased online sales which grew by 15%.
Group sales down 8% from previous period, but still 15% up on same period in 2020.
Like everybody else, supply issues with increases in freight costs will have an impact on profitability, but no mention of  how much.
They are expecting a big boost when lockdowns cease as pent up demand will be out and about.
One of the interesting things in the annual report was that ADH returned the net job keeper payments to the government.
That should get a good ESG score.
Will keep right on holding for the long term.
Mick


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## mullokintyre (21 October 2021)

ADH crunched today.
Must be delayed reaction to yesterday.
Though I thought yesterdays announcements  did not warrant a 6% pull back.
Will buy more when I can see a bottom is in for this pull back.
Mick


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## mullokintyre (8 November 2021)

Now that people are allowed to go out and do discretionary shopping,I thought some of the retailers nay have got a kick along.
ADH still falling.
About to test the lows at 3.51 from back in March.
But I don't think we have seen the bottom just yet.
Mick


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## mullokintyre (25 November 2021)

ADH announced it is buying Focus on Furniture retail chain.
market seems to think its a good idea.
Up 7% this morning.
Think that might mean we have started a bit of a recovery.
Added some more just in case.
Mick


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## mullokintyre (24 January 2022)

ADH absolutely smashed today, down 19%.
Quarterly sales figures well down, expected yearly sales down, not a good look.
Another one of my great investment duds.
But this time I am going to blame covid.
Mick


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## finicky (24 January 2022)

Adairs too huh? I've noticed a couple of discretionary retailers correcting lately and was looking at Kogan (KGN) in particular over the w/e. But in this sub-category (homewares?) I see that Temple & Webster (TPW) is going poorly too. 

Both have stand aside charts for me fwiw: TPW might have just broken support @$8 and is looking like a bearish double top whereas this one, ADH, has not yet broken support @ $3 but will look toppy if it does.

Used to hold ADH

5 year Weekly


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## divs4ever (24 January 2022)

i have a fair amount of Consumer Discretionary stocks ( just not ADH  , TPW , or JBH )

maybe i should crunch some numbers now share-holder confidence is rattled 

good luck folks


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## mullokintyre (24 January 2022)

Like a few others, I  am keeping a fair bit cash ready for the next correction/slump/rebalancing/crash.
ADH probably would be one of the ones I look at if the price gets crunched enough.
Sitting on a PE of less than 10,  may be a better buy in the future.


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## mullokintyre (21 October 2022)

ADH annual out.
Sales up, EPS and DPS both down.
The  co had an IPO at 2.40 back in 2015.
seven years later it is below 2 bucks.
PE around 7.
forecasts for next year is pretty much the same as this year.
If it gets to a 52 week low, I might be tempted.
Mick


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## frugal.rock (Tuesday at 10:11 PM)

Chart only.


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