The ASX-listed owner of Adairs, Mocka and Focus on Furniture has told investors of a late improvement in its sales performance as it heads into the key Black Friday and Christmas trading period, with the search for a new CEO ongoing following Elle Roseby’s resignation.

Roseby stepped back from the retailer in late September, but will serve until the end of her notice period in March. When announcing her departure, she said that “Adairs, Mocka and Focus on Furniture now form an exciting platform for the future”.

The comments come after a challenging period for the group. Heavy losses on the balance sheet have been driven by its struggles at Focus on Furniture. The Adairs brand has also been undergoing a reset strategy that saw it end operations in New Zealand, invest $30 million in upgrading remaining stores, and undergo a digital transformation.

But now the retailer appears to be showing green shoots of recovery. Sharing a 19-week sales period with investors, positive signs began to appear in the latter eight weeks. The Adairs brand grew sales by 2.6 per cent in this second half, while Focus on Furniture narrowed its sales decline from 27.6 per cent in the prior corresponding eight-week period to 3.8 per cent.

Mocka, the group’s strongest performer, saw sales growth slip from 15.3 per cent to 9.8 per cent in the 19 weeks.

The late uplift in sales didn’t mitigate a groupwide sales decline for the wider three-month period. 9 per cent decline compared to the previous year prompted caution.

Source link