Adairs (ADH) H1 2026 earnings summary

Executive summary

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

• 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 $14.0 million to $53.6 million, with gearing at 0.8x net debt/EBITDA.

• Interim fully franked dividend of 5.5 cents per share declared, totaling $9.8 million.

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

Financial highlights

• Group sales: $329.0 million (+5.9% YoY); Adairs $229.4 million (+4.0%), Focus $63.1 million (+1.9%), Mocka $36.5 million (+29.8%).

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

• Gross profit increased 3.6% to $153.9 million; group gross margin declined 120bps to 58.7%.

• Net debt reduced to $53.6 million; inventories down to $93.3 million.

• Statutory NPAT decreased 33.8% to $12.8 million; basic EPS down 34.5% to 7.3 cents.

Outlook and guidance

• Group expects sales, margin, and underlying EBIT growth in 2H FY26 versus prior year, with sales up 6.4% in the first seven weeks.

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

• FY26 capital and project expenditure guidance unchanged at $25–$30 million.

• 97% of FY26 USD commitments hedged at US$0.66; 44% of FY27 at US$0.67.