Key highlights

  • Adairs shares closed at $1.315 on 12 November 2026, down 9.31%, while the S&P/ASX 200 eased 0.07%.
  • FY26 group sales rose 3.8% to $641.7 million, but a $63.5 million Impairment at Focus on Furniture produced a statutory net loss after tax of $39.4 million.
  • Group sales excluding the exited New Zealand Business were down 4.5% over the first eight weeks of FY27, and management expects a difficult first half.

Shares in Adairs Limited (ASX:ADH) closed at $1.315 on Thursday 12 November 2026, down 9.31% on the session. The benchmark S&P/ASX 200 finished at 9,146.80, down 0.07%, so the home furnishings retailer fell far more sharply than the broader market. Adairs runs the Adairs, Focus on Furniture and Mocka brands across Australia and New Zealand. Its most recent full update was the FY26 full-year results, released on 24 August 2026.

Sales growth and profit picture

In its FY26 results released on 24 August 2026, Adairs reported group sales of $641.7 million for the 52 weeks ended 28 June 2026, an increase of 3.8%. Underlying EBIT came in at $55.0 million, slightly below the prior year, while underlying net profit after tax rose 1.7% to $34.6 million. Group gross Margin edged up to 59.0%, and net Debt fell by $20 million over the year to $47.6 million.

Focus on Furniture write-down and turnaround

Adairs booked a non-cash impairment of $63.5 million against Goodwill and Brand intangibles carried for Focus on Furniture, which contributed to the statutory loss. Focus on Furniture sales fell 5.6% to $111.3 million and underlying EBIT dropped 67.6% to $3.8 million. The company said the previous executive team departed in the third quarter, inventory planning visibility weakened during the handover, and a sharp fourth-quarter slump followed. A new Leadership team has launched a turnaround built on product renewal, a repositioned brand and stronger store execution.

Mocka growth and New Zealand exit

Mocka recorded sales of $71.2 million, up 22.9%, with underlying EBIT rising 32.1% to $10.1 million. Over the same period Adairs completed the exit of its loss-making New Zealand business, with all stores ceasing trading by year end, and closed 13 smaller or unproductive stores across the group. Exit costs of $2.5 million were excluded from underlying earnings.

Early FY27 trading

In the first eight weeks of FY27, group sales excluding the exited New Zealand business were down 4.5% on the prior year. Adairs real-time sales rose 0.4%, Mocka rose 15.3%, and Focus on Furniture written sales fell 27.6%. Management said it expects a difficult first half of FY27 as reduced inventory availability carries into the new year, with turnaround benefits expected from the second half.

Sector context

Adairs competes in home furnishings, a discretionary category where Demand tends to track household spending, housing activity and the intensity of promotions. Management has pointed to clearance activity and discounting as key influences on margins, and the group's move to a smaller store footprint, with growth coming from Mocka and online, mirrors a wider shift among specialty retailers. The broader index was close to flat on 12 November, which points to a stock-specific move rather than a market-wide one.

Risks and limitations

The near-term outlook carries clear uncertainty, with the company warning of a difficult first half and not providing FY27 Earnings guidance. The Focus on Furniture turnaround is at an early stage, with new collections expected to start landing from the second quarter of FY27. Underlying measures are non-IFRS and unaudited, and the statutory result was a loss. The ERP system replacement began cutover in July 2026 and carries implementation risk.

What to watch ahead

Attention is likely to centre on the next phase of the ERP implementation, scheduled for the first quarter of FY27, and on whether stock availability and delivery lead times at Focus on Furniture recover as planned into the second quarter. The planned third Mocka store at Mornington, expected in the third quarter of FY27, will also be closely followed given its role in testing the Mocka network model.

Closing thoughts

Adairs shares finished the session sharply lower at $1.315. The most recent reported picture combines higher sales, lower net debt and a higher full-year Dividend with a statutory loss, a large write-down at Focus on Furniture and a softer start to FY27. How the Focus on Furniture recovery and the systems upgrade unfold will shape the company's direction in the months ahead.