2017 was a turbulent year for Adairs Ltd (ASX: ADH) shareholders.
The company's share price plunged from above $1.50 at the start of the year to less than 60 cents in June.
But since then things have been looking much better for the retailer of bedroom, bathroom and homeware products.
The Adairs share price is now trading for about $2.10, gaining more than 550 per cent since June last year.
And shareholders enjoyed further gains on Wednesday with the company's share price jumping 8.8 per cent amid a positive trading update.
Adairs announced that it now expects total sales for the first half of financial year (FY) 2018 to be $149 million, an increase of almost 20 per cent on the prior corresponding period.
The positive first half results prompted management to project sales for the full year to come in at between $300 million and $310 million.
Adairs had previously projected sales for FY 2018 of between $290 million and $305 million.
For FY 2017 Adairs reported sales of $265 million and a gross profit of $156 million.
The company also paid shareholders a dividend per share (fully franked) of 8 cents last year, factoring in the recent gains of the company's share price that would result in a trailing yield of about 3.8 per cent.
Adairs shares are now changing hands for about 16 times earnings, still below the sector average of around 20 times earnings.
Another furniture retailer, Nick Scali Limited (ASX: NCK), sees its shares trade for about 15.5 times earnings, while Harvey Norman Holdings Limited (ASX: HVN) shares are going for about 11 times earnings.
While some analysts are not so enthusiastic about Harvey Norman, Adairs is living up to positive expectations.
Just a few weeks ago UBS analysts upgraded its price target on Adairs shares from $1.65 to $2.10.
Adairs is expected to release its audited half year results on 26 February 2018.
