Adairs Sales Dip 0.6% Year to Date as Peak Season Tests First Half

Adairs Limited's trading update shows sales down 0.6% after 19 weeks of the year, with a late-year slowdown putting weight on the Christmas trading weeks.
By Josua Ferreira -
  • Adairs Group sales are down 0.6% after 19 weeks, a big improvement on the 4.5% fall in the first eight weeks.
  • Mocka is the standout, with sales up 12.2% so far this year, while Focus on Furniture is still down 15.1%.
  • Sales have slowed in the last six weeks, with the second quarter so far down 1.5% as cost-of-living pressure and higher interest rates bite.
  • About one third of first-half sales last year came from Black Friday, Christmas and Boxing Day, so the next seven weeks will decide the half.
  • Adairs is not giving a profit forecast, and the search for a successor to chief executive Elle Roseby is under way.
Summarise with AI:

Adairs trading update: Group sales down 0.6% after first 19 weeks of FY27

Adairs Limited (ASX: ADH) said Group sales for the first 19 weeks of FY27 were down 0.6% on the prior corresponding period (pcp). That compares with -4.5% for the first eight weeks, as reported with the FY26 results on 24 August 2026.

Weeks 9 to 19 delivered Group sales growth of +2.2%, and Group gross margin is ahead of the pcp for the year to date. The period runs from 29 June 2026 to 8 November 2026.

The consumer environment has become more challenging over the last six weeks, with growth slowing in all businesses. Group sales for the second quarter to date are down 1.5% on the pcp.

Comparisons exclude the exited Adairs New Zealand business, and all sales figures are unaudited management figures. The update was released ahead of the 2026 Annual General Meeting (AGM) on 11 November 2026.

Sales by business: Mocka leads, Focus on Furniture improves

Mocka recorded the strongest year-to-date growth of the businesses, while Focus on Furniture remained well below the pcp despite an improvement since the first eight weeks.

FY27 Year-to-Date Sales Performance by Business

Business First 8 weeks (as reported 24 August 2026) Weeks 9 to 19 (24 August to 8 November) Year to date (weeks 1 to 19)
Adairs (Australia) +0.4% +2.6% +1.7%
Mocka +15.3% +9.8% +12.2%
Focus on Furniture (written sales) -27.6% -3.8% -15.1%
Group (excluding Adairs New Zealand) -4.5% +2.2% -0.6%

Adairs (Australia)

Sales grew 4.3% in the first quarter but were down 2.3% for the second quarter to date. Adairs has maintained its pricing discipline, and gross margin remains ahead of the pcp.

Mocka

Mocka’s growth was led by continued growth in the Australian market. Sales grew 13.6% in the first quarter and 9.4% for the second quarter to date, and gross margin is above the pcp for the year to date.

Focus on Furniture

Focus on Furniture reports written sales, which are recognised as revenue on delivery. Written sales for the second quarter to date were down 4.6% on the pcp.

Gross margin is currently tracking 300 to 400bps below the pcp, reflecting higher price-led promotional activity to rebuild traffic and drive conversion. Consistent with the outlook provided with the FY26 results, the first half is expected to remain challenging.

For readers wanting the earnings backdrop to this trading update, our full explainer on Adairs FY26 results walks through brand-level EBIT, the Focus on Furniture impairment, the dividend increase and the balance sheet position.

Consumer pressures and what peak trading means for the first half

Adairs said cost-of-living pressures and higher interest rates continue to weigh on household budgets and discretionary spending. The further interest rate increase this month adds to that pressure.

The remaining seven weeks of the first half to 27 December 2026 include Black Friday, Christmas and the Boxing Day sales. These accounted for around one third of the Group’s first-half sales in the pcp, and the first-half result will depend heavily on trading through this period. Inventory is well positioned for the peak trading period.

Peak trading matters because a large share of a retailer’s half-year sales can fall into a few weeks, so a strong or weak result there moves the total. The pcp is the same period a year earlier, which lets readers judge growth without seasonal swings distorting the comparison.

Written sales count orders when they are placed, while revenue from those orders is recognised only on delivery. Real-time sales, used for Adairs (Australia) and Mocka, are counted as they occur.

The Board expects the consumer environment to remain challenging through the peak trading period. The Group remains focused on matters within its control: serving customers well, strengthening its product and value propositions, controlling costs and inventory, and simplifying operations.

As outlined with the FY26 results, FY27 is focused on earnings quality: moderate gross margin expansion, cost productivity and disciplined capital allocation. Adairs is not providing FY27 earnings guidance, including for the first half.

What happens next for Adairs

  1. The remaining seven weeks of the first half, through to 27 December 2026, cover Black Friday, Christmas and the Boxing Day sales.
  2. The Board began the process to appoint Elle Roseby’s successor as Group CEO, as announced on 29 September 2026, and will update the market in due course.
  3. The AGM is on 11 November 2026 at 11.15am (Melbourne time) at the Hyatt Centric Melbourne, 25 Downie Street, Melbourne, with a live webcast at https://meetings.openbriefing.com/ADH26. The Chair’s and Group CEO’s addresses and the AGM presentation are being released to ASX separately the same day.

The Adairs CEO succession announcement also brought two senior leadership changes, with Rachel Taylor stepping into an expanded Adairs brand role and Matt Edmonds taking on wider operations oversight alongside his CFO remit.

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Frequently Asked Questions

What is a trading update?

A trading update is a short report a company releases between its main results to show how sales are going. Adairs released one before its annual general meeting on 11 November 2026.

How did Adairs sales perform in the first 19 weeks of this financial year?

Group sales were down 0.6% on the same period last year. The first eight weeks were down 4.5%, while weeks 9 to 19 grew 2.2%.

What are written sales at Focus on Furniture?

Written sales count orders when they are placed, while revenue from those orders is counted only on delivery. Focus on Furniture reports written sales, which are down 15.1% so far this year.

Why does Black Friday to Boxing Day matter for Adairs?

These sales made up about one third of the Group's first-half sales last year. The first-half result will depend heavily on how trading goes in this stretch.

Is Adairs giving a profit forecast for this financial year?

No. Adairs said it is not providing earnings guidance for this financial year, including the first half.

Josua Ferreira
By Josua Ferreira
Partnership Director
Josua Ferreira holds a Bachelor of Commerce in Marketing and Advertising and brings a background in publication, business development, and ASX market storytelling. He has worked with listed companies across the resource sector and broader market, combining sharp commercial instincts with a genuine commitment to keeping investors informed.
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