Key highlights

  • Adairs reported FY26 group sales of $641.7 million, up 3.8%, and underlying EBIT of $55.0 million in its 24 August 2026 release.
  • Statutory net loss after tax was $39.4 million, reflecting a non-cash Impairment of Focus on Furniture and the exit of Adairs New Zealand.
  • Net Debt fell $20 million to $47.6 million, and the final Dividend was 6.0 cents.

Shares in Adairs Ltd (ASX:ADH) ended 21 October 2026 at $1.36, up 0.74%. The S&P/ASX 200 Consumer Discretionary [XDJ] stood at 3,741.90, a rise of 0.34% (12.50 points), while the S&P/ASX 200 [XJO] was at 8,831.30, a rise of 0.16%, and the All Ordinaries at 8,956.60, a rise of 0.14%, at 5:00 pm GMT+11. Adairs is an Australian home furnishings retailer with the Adairs, Mocka and Focus on Furniture brands.

What Adairs does

Adairs Limited sells homewares and furniture through Adairs stores and online, the Mocka online furniture Business and the Focus on Furniture store network.

FY26 results

In an ASX announcement dated 24 August 2026 for the 52 weeks ended 28 June 2026, Adairs reported group sales of $641.7 million, up 3.8%, with growth at Adairs and Mocka partly offset by a decline at Focus on Furniture. Gross Margin was 59.0%, up 10 basis points. Underlying EBIT was $55.0 million, with Adairs and Mocka each delivering double-digit growth. Statutory net loss after tax was $39.4 million, reflecting the non-cash impairment of Focus on Furniture announced on 8 July 2026, SaaS project costs, Adairs New Zealand exit costs and AASB 16 effects.

Portfolio and balance sheet

Adairs closed underperforming stores, exited the loss-making Adairs New Zealand business and impaired Focus on Furniture to reflect current trading. 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%.

Sector context

Consumer discretionary companies depend on household spending, travel, leisure and housing activity, and they are tracked through the S&P/ASX 200 Consumer Discretionary index, which closed at 3,741.90, up 0.34%, on 21 October 2026 alongside a 0.16% rise in the S&P/ASX 200 to 8,831.30. Homewares and furniture Demand depends on housing turnover and household spending.

Risks and uncertainties

Focus on Furniture underperformed, the company recorded a statutory loss and Operating Leverage was affected. Housing activity, consumer demand, Inflation and Supply costs can affect results.

Catalysts to watch

Items to watch include the reset of Focus on Furniture, Adairs and Mocka growth and the half-year result.

Wrapping up

Adairs’ 24 August 2026 release recorded higher sales, a lower net debt and a statutory loss after impairment. The next result will show the reset’s progress.