Adairs shares slide on $60m impairment charge

The news: Furniture retailer Adairs has flagged a non-cash impairment charge of up to $60 million after tax to be recognised in its full-year earnings, driven by the sluggish performance and weak sales of its ‘Focus on Furniture’ subsidiary during the second half.

The numbers: The group now expects to report a statutory net loss after tax of approximately $43 million in FY26, finishing the financial year with group net debt of around $49 million at the end of June.

The FY26 group sales are projected to be between $640 million to $641.5 million, representing a 3.7% increase from the prior corresponding period, while group underlying EBIT is expected to land within the $53.5 million to $55.5 million range, marking a 1.3% decrease from FY25.

Shares fell 4.4% to $1.43 at 10:50am AEST.

The context: Adairs stated that the softer performance within its Focus on Furniture business was driven by aggressive competitor promotional activity, conversion pressure and product underperformance during the second half as the business transitions under new management.