Why is Adairs (ASX:ADH) expecting a net loss for the 2026 financial year?

Adairs (ASX:ADH) expects a statutory net loss after tax of approximately $43 million because of a non-cash impairment charge on its Focus on Furniture business unit. The company forecasts this specific impairment charge to sit within a range of $62 million to $68 million.

What are the primary financial ranges reported by Adairs (ASX:ADH) in its latest trading update?

Adairs (ASX:ADH) expects full-year group sales between $640 million and $641.5 million alongside an underlying EBIT of $53.5 million to $55.5 million. However, significant one-off costs will result in an estimated final statutory net loss after tax of $39 million to $46 million.

What software costs and technology expenses did Adairs (ASX:ADH) incur?

Adairs (ASX:ADH) incurred software-as-a-service (SaaS) project costs, including an enterprise resource planning (ERP) system update, totaling $18 million to $19 million.

What does the New Zealand market exit mean for the Adairs (ASX:ADH) timeline?

Adairs (ASX:ADH) is exiting the New Zealand market, a move that generated closure-related costs between $3.5 million and $4 million during the 2026 financial year.

How is the Focus on Furniture brand impacting the performance of Adairs (ASX:ADH)?

The Focus on Furniture unit owned by Adairs (ASX:ADH) experienced a sales decline in the second half of the year due to aggressive competitor promotions and operational transitions.

Retail

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Adairs announces a $43M expected net loss

Written by Heidi Cuthbert Published Jul 8, 2026, 1:12 AM

Adairs announced an expected statutory net loss after tax of approximately $43 million for the 2026 financial year.
The company's share price closed lower at $1.49 following the morning market update.
Management is executing operational updates at Focus on Furniture to improve retail performance heading into the 2027 financial year.

Adairs (ASX:ADH) announced an expected statutory net loss after tax of approximately $43 million for the 2026 financial year.

The expected loss compares to a projected underlying EBIT of $55.5 million for the full year.

The group attributed the outcome to a non-cash impairment on Focus on Furniture of $68 million.

Other costs included up to $19 million for software updates.

The company stated that these operational changes lay the foundations for improving performance as the 2027 financial year progresses.

Following the announcement, the Adairs share price was down at $1.49.

The retailer plans to release its full audited results for its three primary home furnishing brands on Aug. 24.

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Adairs announces a $43M expected net loss

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