Home renovations and WFH light up Beacon Lighting sales

The rush to set up home offices and refurbish homes during COVID-19 has helped put a rocket under Beacon Lighting sales and earnings.

Beacon Lighting executive chairman Ian Robinson, left, and chief executive Glen Robinson. Picture: David Geraghty

The rush to set up home offices and refurbish homes during COVID-19 has helped put a rocket under Beacon Lighting sales and earnings in the first half, with the lighting retailer forecasting its December-half profit to more than double.

It is the latest retailer to report that the global pandemic and subsequent lockdowns and home isolation restrictions across the nation have turned people’s minds to renovations, projects and improving their home interiors with couches, cushions, carpets and new lounges requiring better lighting to show them off.

Consumers unable to travel overseas have turned their disposable income to eating out and increasingly to their homes, with home offices ­especially demanding new lighting.

In a trading update on Wednesday, Beacon Lighting said for the 26 weeks to December 27 it was forecasting sales to be $147m-$152m, against sales for the first half of 2020 of $122.5m.

It said it was expecting first-half profit for 2021 to be between $19.5m and $21.5m, against a 2020 first-half profit of $9.5m.

Although there was uncertainty ahead in consumer spending, the lighting retailer was confident to provide the earnings guidance for the period to ­December 27.

Beacon Lighting said throughout the first half of 2021, retail trading conditions had continued to be supportive of sales at its stores.

“The trading conditions have been reflected in improved store, online and trade traffic which has resulted in a strong sales performance year to date. Beacon International sales also continue to be exciting for the Beacon Lighting Group,” the company said.

In June, Beacon Lighting ­offered a similar upbeat trading update as Australia entered a protracted period of a pandemic-­induced lockdowns, store shut­downs and home isolation. It reported in the second half through to June 14 that it had achieved sales growth of 15.5 per cent and online sales growth of 77.7 per cent. It was mirrored by other retailers that sell items for the home, such as Adairs, Harvey Norman, JB Hi-Fi, Temple & Webster and Kogan that have captured growing sales since March.

 

On Wednesday, Beacon Lighting chief executive Glen Robinson said lighting continued to be a category that had traded strongly through the pandemic.

“We are very fortunate to be in a retail category which has seen terrific momentum in a period which has been very difficult for so many businesses in Australia and around the world,” Mr Robinson said.

“We continue to offer exceptional customer service and stock availability in periods of high demand and this is a credit to the professionalism of our team. Our customers have adapted to the changing conditions and restrictions throughout Australia, with many now using their homes for different purposes.”

Shares in Beacon Lighting rose 18c, or 12.78 per cent, to $1.60 on the positive trading update.