Adairs (ADH) H2 2026 earnings summary

Executive summary

• Group sales rose 3.8% to AUD 641.7 million, with underlying EBITDA up 1% and underlying NPAT up 1.7%.

• Adairs and Mocka delivered strong sales and EBIT growth, while Focus on Furniture faced significant challenges and a statutory loss of AUD 39.4 million due to non-cash impairment and exit costs.

• Net debt reduced by AUD 20 million to AUD 47.6 million, and dividends increased 9.5% to 11.5cps.

Financial highlights

• Adairs sales reached AUD 459.2 million, up 3.9%, with EBIT up 14.9% to AUD 41.1 million.

• Mocka sales grew 22.9% to AUD 71.2 million, with EBIT up 32.1% to AUD 10.1 million.

• Focus on Furniture sales declined 5.6% to AUD 111.3 million, with EBIT down 67.6% to AUD 3.8 million.

• Underlying EBITDA was AUD 68.7 million (+1.0%), and underlying EBIT was AUD 55 million.

• Gross margin improved to 59.0% (+10bps), and online sales grew 12.6% to 32.6% of group sales.

Outlook and guidance

• FY 2027 will focus on earnings quality, moderate margin expansion, cost productivity, and disciplined capital allocation.

• No FY 2027 earnings guidance provided; 70% of USD requirements hedged at $0.674.

• Adairs plans 7-10 new stores, 4-6 upsizes/refurbishments, and 2-5 closures; Mocka to open more stores based on pilot results.

• Focus on Furniture expects a difficult first half with recovery benefits in the second half.

• Group sales in the first eight weeks of FY27 (excluding exited NZ business) were down 4.5% year-over-year.