Key highlights

  • Nick Scali (ASX:NCK) reported group NPAT up 22% and a 210 basis point improvement in gross margin.
  • Adairs (ASX:ADH) reported underlying EBIT of $55.0 million and a statutory loss of $39.4 million after a Focus on Furniture impairment.
  • Harvey Norman (ASX:HVN) reported system sales of $9,636.02 million and reported PBT of $790.29 million.

Furniture and homewares retailers reported results for the year to 30 June 2026 against a backdrop of subdued housing-related spending. This article reviews the FY26 results of Nick Scali Limited (ASX:NCK), Adairs Limited (ASX:ADH) and Harvey Norman Holdings Limited (ASX:HVN), including how each company dealt with one-off items, overseas operations and property values.

Sector context

Home furnishings demand is linked to housing activity, household confidence and interest rates, and several of the releases describe a subdued retail environment. The three companies differ in business model, from direct showroom ownership to franchising and online furniture.

Nick Scali Limited (ASX:NCK)

Nick Scali reported its FY26 results on 7 August 2026. Group net profit after tax rose 22% and revenue rose 4% in a subdued retail environment, with gross margin up 210 basis points through pricing, sourcing and inventory management. ANZ NPAT was $80.5 million and ANZ revenue was $476.7 million, up 5.1%, with a gross margin of 66.0%.

ANZ written sales orders rose 2.7% for the year, with a softer second half. The UK business recorded a net loss of $4.8 million for the year, including a $5.6 million loss in the first half and a $0.8 million profit in the second half, with UK written orders up 31.4% to $45.0 million.

Adairs Limited (ASX:ADH)

Adairs reported FY26 results on 24 August 2026. Group sales were $641.7 million, up 3.8%, gross margin was 59.0% and underlying EBIT was $55.0 million, with Adairs and Mocka each delivering double-digit growth. The statutory net loss after tax was $39.4 million, reflecting a non-cash impairment of Focus on Furniture, SaaS project costs, the exit of Adairs New Zealand and AASB 16 effects.

Net debt fell $20 million to $47.6 million, about 0.7 times underlying EBITDA. A fully franked final dividend of 6.0 cents was declared, taking the full-year dividend to 11.5 cents, up 9.5%.

Harvey Norman Holdings Limited (ASX:HVN)

Harvey Norman reported results for the year ended 30 June 2026. System sales revenue was $9,636.02 million, up 3.1%, EBITDA was $1,181.95 million, up 5.0%, and reported PBT was $790.29 million, up 4.9%. Excluding AASB 16, net property revaluations and a pecuniary penalty, PBT was $654.69 million, up 10.9%.

Profit after tax and non-controlling interests was $528.46 million, up 2.0%, basic EPS was 42.41 cents and the fully franked dividend was 27.5 cents, up 3.8%. The company said total assets approached $9 billion and net assets approached $5 billion, with low gearing.

Reading across the three results

Nick Scali reported higher profit and margins with a UK business returning to second-half profit, Adairs reported higher underlying earnings alongside a statutory loss from impairments, and Harvey Norman reported higher sales and profit that include property and accounting items. The measures used differ, so comparisons between the three should be made with care.