Adairs
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Adairs (ADH) investor relations material

Adairs H1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2026 earnings summary23 Feb, 2026

Executive summary

  • Group sales reached AUD 329 million (or $329.0 million), up 5.9% year-over-year, with all brands contributing to growth and Mocka leading at 29.8%.

  • Underlying EBIT declined 9.1% to AUD 13 million (or $30.0 million), with Adairs and Focus on Furniture down, but Mocka up 45.5%.

  • Net debt reduced by AUD 14.0 million to AUD 53.6 million, with gearing at 0.8x net debt/EBITDA.

  • Interim fully franked dividend of 5.5 cents per share declared, totaling AUD 9.8 million and representing 76% of statutory NPAT.

  • Key executive changes include new Group CFO and new CEO for Focus on Furniture.

Financial highlights

  • Group sales: AUD 329 million (+5.9% YoY); Adairs AUD 229.4 million (+4.0%), Focus AUD 63.1 million (+1.9%), Mocka AUD 36.5 million (+29.8%).

  • Underlying EBIT: AUD 13 million (or $30.0 million, -9.1% YoY); Adairs AUD 18.6 million (-10.0%), Focus AUD 5.8 million (-31.7%), Mocka AUD 5.6 million (+45.5%).

  • Group gross margin: 58.7% (-120bps YoY); EBIT margin: 9.1% (-150bps YoY); Adairs gross margin down 170bps.

  • Net debt: AUD 53.6 million (down from AUD 57.8 million YoY); inventories: AUD 93.3 million (down from AUD 97.6 million YoY).

  • Net cash flows from operating activities were AUD 50.9 million, up from AUD 49.0 million.

Outlook and guidance

  • Group expects sales, margin, and underlying EBIT growth in H2 FY2026 versus prior year.

  • For first 7 weeks of H2, group sales up 6.4%; Adairs up 4.8%, Focus up 0.8%, Mocka up 31.3%.

  • 3-5 new Adairs stores, 1 new Focus store, and first Mocka standalone store to open in H2; 6-7 Adairs stores to close.

  • Adairs gross margin expected to recover to 62%+ in H2, with further improvement in FY2027 aided by FX tailwinds.

  • Capex guidance unchanged: AUD 25–30 million for FY26, with AUD 12–15 million in capital expenditure and AUD 13–15 million in project expenditure for Adairs data and technology upgrade.

Adairs H2/FY27 gross margin drivers?
Mocka physical store strategy validation
Focus on Furniture turnaround strategy progress
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Frequently asked questions

Adairs Limited operates as a specialty retailer of home decoration and furnishing products in Australia and New Zealand. It offers bedroom and bathroom linens, dining and kitchen products, rugs, kids decor, and decorator items, as well as cushions, throws, storage solutions, wall and mirrors, candles, gifts, furniture, and lighting. The company also sells its products through various e-commerce sites; digital catalogs; retail apps; and in-store kiosks. In addition, it licenses its brand of homeware products to other retailers. Adairs Limited was founded in 1918 and is based in Scoresby, Australia.

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