Adairs posts record 1H sales as Mocka shines and resets take hold

Adairs Ltd. ( (AU:ADH) ) has provided an announcement.

Adairs Limited reported first-half FY26 sales of $329 million, up 5.9%, as it reset operations across its banners and exited excess inventory. Group gross margin slipped and underlying earnings weakened, with statutory NPAT down 33.8%, but sales momentum improved in the second quarter, net debt fell, and the company maintained dividends at a lower level while targeting margin and earnings recovery in the second half.

The core Adairs brand delivered modest sales growth and better Q2 profitability after aggressive Q1 clearance, while Focus on Furniture faced margin pressure from higher costs and negative like-for-like sales, prompting a leadership overhaul and store refurbishment push. Online-led Mocka was the standout, posting near-30% sales growth, higher margins, and a 45.5% jump in EBIT, and is now moving into standalone stores, signaling a strategic shift toward leveraging its strongest growth vehicle.

The most recent analyst rating on (AU:ADH) stock is a Hold with a A$2.05 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

More about Adairs Ltd.

Adairs Limited is an Australian specialty retailer focused on home furnishings, bedding, and furniture, operating the Adairs, Focus on Furniture, and Mocka brands. The group targets value-conscious consumers across Australia and New Zealand through a mix of physical stores and online channels, with growing emphasis on data, technology, and new retail formats to support expansion.

YTD Price Performance: 1.42%

Average Trading Volume: 782,691

Technical Sentiment Signal: Sell

Current Market Cap: A$312.1M

For a thorough assessment of ADH stock, go to TipRanks’ Stock Analysis page.