Adairs posts 34% decline in 1H profit as gross margin contracts

The news: Homeware and furniture retailer Adairs has reported a 34% decline in first-half statutory profit to $12.8 million after its gross margin dropped by 170 basis points during the period.

The numbers: The result was lower than the $18.8 million expected by analysts, according to Visible Alpha data.

Revenue climbed 6% year on year to $329 million, topping consensus estimates of $326 million.

The group declared an interim dividend of 5.5 cents per share, down from 6.5 cents per share a year earlier.