Key points
- Group sales increased by 3.8% to $641.7 million
- Gross margin improved by 10 basis points to 59.0%
- Underlying Group EBIT of $55.0 million, with Adairs and Mocka performing well
- Statutory net loss after tax of $39.4 million due to non-cash impairment at Focus on Furniture
- Fully franked final dividend of 6.0 cents per share
Full summary
Adairs Limited released its audited results for the 52 weeks ended 28 June 2026, reporting group sales of $641.7 million, up 3.8%. Group gross margin improved by 10 basis points to 59.0%. Adairs and Mocka delivered strong performances, while Focus on Furniture underperformed. Underlying Group EBIT was $55.0 million, with Adairs and Mocka contributing positively. However, the company reported a statutory net loss after tax of $39.4 million due to a non-cash impairment at Focus on Furniture, SaaS project costs, Adairs New Zealand exit costs, and the impact of AASB 16 Leases. The company declared a fully franked final dividend of 6.0 cents per share, totaling 11.5 cents for the full year, up 9.5% from FY25. The company expects a challenging first half of FY27 for Focus on Furniture, with benefits from the turnaround program expected from the second half.
Guidance
No FY27 earnings guidance provided
Outlook
Focus on Furniture turnaround expected to show benefits from the second half of FY27. Adairs and Mocka expected to maintain momentum. Group sales expected to be moderate in the first half of FY27.