Ann: ADH FY2021 Results Announcement, page-9

Adairs online and Mocka continue to power ahead growing nice mid-teens on a period last year when they grew + 103% and +47% respectively.

Interesting that they went to the effort of presenting LFL store comps for first 7 weeks of FY22. It's basically an ex-NSW and VIC number and -3% is not too bad considering they are comping +16% from last year (although we don't have an ex-NSW and VIC number from last year for an exact comparison).

Gross margins moderating vs FY21 but "remain well above FY20 levels". You'd happily take that given FY21 GM was up an unprecedented 520bps to 66.7%.

Other interesting initial takeaways: online sales was a crazy high 37% of total sales in FY21 and this will grow significantly into FY22. They are not far away from being a 50% online retailer. That's pretty unprecedented in Aussie discretionary retail. A further +15% on Linen Lovers to nearly 1 million members. How many retailers (or even companies) in Aus have 1 million PAID members (albeit a fairly low cost membership)?? And now accounting for 80% of sales you're almost in a Costco type situation.

Despite the very high online penetration they're maintaining the investment in stores. Lastly we got a bit of colour around the early Mocka payout which caused a decent sell-off when it was announced. Sounds like Adairs management wanted to make some further investments (website platform, DC) and the Mocka founders didn't like that, perhaps concerned about impact on their deferred hurdles. So Adairs just decided to pay them out early and move them on. It's actually not an uncommon scenario.

Overall I'd describe these as a strong set of results.