Adairs Ltd. · ASX:ADH
Adairs — UBS Australasia Conference November 2019
11 slides from Adairs's conference presentation, Nov 18, 2019
Slide 1: Adairs UBS Australasia Conference November 2019
Adairs UBS Australasia Conference November 2019 MARK RONAN CHIEF EXECUTIVE OFFICER
Slide 2: Our Range and Product differentiation
Our Range and Product differentiation Who we are … • Adairs is a leading specialty omni‐channel retailer of home furnishings in Australia and New Zealand with a national footprint of stores across a number of store formats and a leading online channel. • Our strategy is to present customers with a d
Slide 3: A recap: Our strategy
A recap: Our strategy A Recap ‐ Our Strategies Product, Product, Product Develop design led on‐trend quality products with focus on delivering value and category expansion More inspiring larger stores Larger stores (including upsized stores) to enhance our customer experience, support our range expa
Slide 4: Our Performance – key trends
Our Performance – key trends Adairs LFL Sales Growth - last 5 Years Adairs EBIT and EBIT margin (5 Year Average of +10.7%) 50 (Last 5 years, $m) 45.3 35.0% 24.1% 45 43.8 39.2 30.0% 40 18.8% 35 33.1 25.0% 15.4% 30.8 14.8% 13.8% 30 20.0% 25 22.5 8.7% 7.3% 7.1% 15.0% 15.7% 15.9% 20 14.4% 15 13.4% 12.7%
Slide 5: Our Omni Channel Approach
Our Omni Channel Approach Our Omni Channel Approach We remain committed to delivering a seamless and flexible customer experience regardless of how, when and where our customers choose to shop with us. Online is an integral component of our business and a key engagement point with our customers. Del
Slide 6: Our Online Result
Our Online Result • Online sales are now 17% of total company sales • Medium term target of $100m in online sales • Given the size of online and its strong contribution margin this is a material contributor to our underlying profit. $70.0 25% Online Sales and % Mix $60.0 20% $50.0 17% Online sales $
Slide 7: Driving traffic
Our Omni Channel Approach Driving traffic Digital channels are our primary form of advertising and communications – social media a key component • Ability to create high‐quality images in‐house specifically for social media • Influencer program cross‐promoting brand page • Early adoption of new feat
Slide 8: Linen Lovers – our loyalty program
Stacey - Graphs to be updated Product, Product, Product Linen Lovers – our loyalty program Our Linen Lovers Club (LLC) loyalty program is a fundamental growth platform ‒ accounts for 75% of all sales Average Transaction Launched in 1995, LLC is one of Australia’s Value oldest loyalty programs and a
Slide 9: FY20 Outlook
FY20 Outlook ► As noted at our AGM on 25 October, trading for the first 16 weeks of FY20 has delivered LFL sales growth of +3.3% with stores sales +0.8% and online sales +16.6%. ► Our focus remains on growing LFL Gross Margin dollars ► FY20 guidance remains unchanged Pre AASB 16 impact FY20 Guidance
Slide 10: Questions?
Questions? HMDS
Slide 11: Disclaimer
Strong Omni Channel Execution Disclaimer Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect Adairs Limited current intentions, plans, expectations, ass