Adairs Second Quarter Sales Down 1.5% as Growth Slows

Adairs (ASX:ADH) released a trading update ahead of its AGM showing growth slowed over the last six weeks, with Group sales for the second quarter to date down 1.5% on the pcp.

Group sales for the first 19 weeks of FY27, to 8 November 2026, were down 0.6% on the pcp, compared with -4.5% for the first eight weeks. Comparisons exclude the exited Adairs New Zealand business. Adairs (Australia) sales were up 1.7% for the 19 weeks, after growing 4.3% in the first quarter and falling 2.3% for the second quarter to date. Mocka sales were up 12.2%, and Focus on Furniture written sales were down 15.1%, with its gross margin tracking 300–400bps below the pcp because of higher price-led promotional activity. Group gross margin is ahead of the pcp for the year to date. The remaining seven weeks of the first half, which include Black Friday, Christmas and the Boxing Day sales, accounted for around one third of the Group's first-half sales in the pcp. The Board expects the consumer environment to remain challenging through that period.

Adairs is not providing FY27 earnings guidance, including for the first half, and the sales figures are unaudited management figures. The Board has begun the process to appoint a successor to Group CEO Elle Roseby and has not yet named one.