Adairs: FY23 earnings - No dividend to cushion the blow

About the author:

Alexander Mees
Author name:
By Alexander Mees
Job title:
Co-Head of Research and Senior Analyst
Date posted:
22 August 2023, 7:30 AM
Sectors Covered:
Gaming and Retail

  • A deteriorating consumer environment, increased promotional activity and operational difficulties at its new national distribution centre (NDC) meant Adairs (ASX:ADH) had a tough year in FY23. Pre-AASB 16 EBIT was down 16%, although this was 2% above our forecast. No final dividend was declared.
  • We have lowered our pre-AASB 16 EBIT by 5% in FY24 and 6% in FY25.
  • We retain a HOLD rating with a reduced target price of (login to view).

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