Adairs FY26 slides: core brands gain as Focus turnaround begins

Adairs Limited (ASX:ADH) unveiled its FY26 results on August 24, 2026, showcasing a tale of two businesses as its core Adairs and Mocka brands experienced robust growth while Focus on Furniture faced a steep decline that prompted a major turnaround plan. The home furnishings retailer reported group sales of $641.7 million, marking a 3.8% increase, with underlying earnings remaining broadly stable despite substantial headwinds at its furniture division.

Adairs' shares surged 2.47% to $1.45 following the presentation, although they remain below the 52-week high of $2.87. The stock has fluctuated between $1.18 and $2.87 over the past year, indicating investor uncertainty regarding the Focus on Furniture turnaround timeline. Adairs described FY26 as a resilient result, with sales rising 3.8%, underlying earnings staying steady, net debt reduced by $20 million, and full-year dividends increasing 9.5% to 11.5 cents per share.

However, the headline figures obscured a significant disparity in brand performance, with Adairs and Mocka now contributing over 90% of group earnings, while Focus on Furniture reported a 67.6% decrease in underlying EBIT.