Adairs (ADH) H2 2025 earnings summary

Executive summary

• Group sales rose 6.5% to $618.1 million in FY25, with record results at Adairs (+9.5%) and Mocka (+14.7%), but a 6.5% decline at Focus on Furniture.

• Underlying EBIT increased 1.4% to $55.2 million, with Adairs and Mocka up over 21% each, while Focus on Furniture declined 36.6%.

• Vision 2030 strategy launched, focusing on sustainable, profitable growth, operational excellence, and leadership renewal.

• Statutory NPAT was $25.7 million, down 17.9% year-over-year, with EPS at 14.6 cents (-18.5%).

• Final fully franked dividend of 4.0 cps declared, totaling 10.5 cps for FY25 (72% payout ratio).

Financial highlights

• Adairs sales up 9.5% to $442.2 million, Mocka up 14.7% to $57.9 million, Focus on Furniture down 6.5% to $117.9 million.

• Group gross margin declined 140bps to 58.9%, with Adairs margin down 170bps to 61.0% and Focus on Furniture down 240bps to 50.8%.

• Group underlying EBIT up 21% for Adairs and Mocka, but Focus on Furniture EBIT down 36.6%.

• Inventory closed at $96 million, up 14.7% year-over-year, with net debt increasing by $3.4 million to $67.6 million.

• Statutory EPS dropped 18.5% to 14.6 cps; costs of doing business rose 5.6% to $221.3 million.

Outlook and guidance

• FY26 is a transition year for Vision 2030, focusing on execution, productivity, and customer engagement.

• Early FY26 trading shows group sales up 22.6% in first 8 weeks, with Adairs +26.6%, Focus on Furniture +6.7%, and Mocka +39.4%.

• 3-5 new Adairs stores and 3-4 upsizes planned; Focus on Furniture targets 3-5 new stores and refurbishments; Mocka to open its first standalone store in H2 FY26.

• FY26 capex expected at $12–15 million, plus $13–15 million for technology and data upgrades.

• 75% of FY26 USD purchases hedged at US$0.64.