ADH
Adairs (ADH) is a better business than you might first expect, given its just furniture (which you might imagine is highly competitive, sensitive to FX, and lower margin).
Despite that, FY23 EBIT guidance is a big miss to market expectations, $75-$85m vs $87m expected.
The acquisition of Mocka and Focus are perhaps underperforming, particularly Mocka, relative to prior expectations. Mocka is a pure play online retailer, and whilst FY20 sales growth was extraordinary, the sector has, in general, been return to pre-pandemic trends for online growth.
We remain quite bearish on the outlook for retail, given consumer confidence, rates, and inflation.
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Please note that past performance is not a reliable indicator of future performance.
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