ADH +1.69%: shares in the homewares and furniture retailer bounced today, despite what most would call a difficult result. Revenue for the first half was in line with expectations at $324m, however, costs were well above expectations and earnings before interest & tax (EBIT) missed by ~10%. The company flagged an additional ~$5m in warehousing costs in the half, while heavy discounting, particularly in the e-commerce brand Mocka, to clear elevated inventory also weighed on margins. The company maintained FY revenue guidance but lowered EBIT guidance by 5% at the midpoint to $70-80m. While shares traded higher today, ADH is currently down ~15% this month.
MM is neutral ADH
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