Adairs Lifts FY26 Revenue to $641.7 Million Despite Furniture Slump

Adairs Limited lifted group revenue 3.8 per cent to $641.7 million in FY26 as solid sales at its core homewares brand and Mocka offset a furniture slump.

Underlying net profit after tax rose to $34.6 million, though non-cash impairment charges dragged the Australian retailer to a statutory net loss of $39.4 million.

The flagship Adairs banner drove the performance. Sales grew 3.9 per cent to $459.2 million, lifting underlying earnings before interest and tax 14.9 per cent to $41.1 million. Gross margin reached 60.9 per cent, while EBIT margin widened 90 basis points to 9 per cent.

Mocka expanded at a faster clip. Revenue jumped 22.9 per cent to $71.2 million and underlying EBIT climbed 32.1 per cent to $10.1 million, supported by catalogue expansion and pricing adjustments. The brand also opened physical trial stores in June.

Supply snags hit furniture earnings

Focus on Furniture weighed on group returns. Sales dropped 5.6 per cent to $111.3 million and underlying EBIT plunged 67.6 per cent after a third-quarter leadership transition disrupted inventory purchasing, thinned showroom floor stock and stretched customer delivery timelines.

The group installed a new divisional chief executive and restarted supplier ordering in April and May. Inbound stock shipments are scheduled to rebuild availability through the second quarter of FY27, with fresh furniture collections arriving from October.

Store network plans and debt reduction

Discretionary retailers across Australasia continue to grapple with uneven consumer sentiment by tightening supply chains and defending gross margins. Adairs countered the furniture drag by trimming net debt by $20 million to $47.6 million, funding a 9.5 per cent increase in full-year dividends to 11.5 cents per share.

Network changes will remain selective in the year ahead. The group plans to open seven to 10 stores, refurbish four to six, and shut between two and five underperforming sites, while Focus on Furniture will focus on relocations rather than adding new stores before earnings recover across FY28.