Adairs provides first-half guidance

Adairs Limited (ASX: ADH) has released a trading update ahead of its Annual General Meeting, outlining sales and gross margin expectations for the first half of FY26.

The company reported that performance so far this half has been broadly in line with guidance given in August alongside its FY25 results. However, trends have varied across its three core brands — Adairs, Focus on Furniture, and Mocka:

• Adairs has seen moderated sales growth following a deliberate reduction in promotional frequency and intensity.

• Focus on Furniture experienced a slowdown in sales after a strong start to the half, with continued discounting weighing on gross profit margins.

• Mocka has maintained strong sales momentum, supported by positive customer response to new product launches.

The company emphasised that the next 10 weeks will be critical, accounting for more than half of first-half sales. Major retail events — including the Linen Lover Sale, Black Friday, Christmas, and Boxing Day — will play a pivotal role in determining the half-year outcome.

Despite softer conditions earlier in the half, Adairs remains cautiously optimistic, highlighting strong inventory positions and well-prepared teams heading into the peak trading period.