Adairs sales fall 0.6% over 19 weeks
Key points
- Adairs group sales fell 0.6% across the first 19 weeks of FY27.
- The company's shares held unchanged at $1.48 as second-quarter sales dropped 1.5%.
- Management stated that elevated interest rates and promotional discounting will keep first-half trading challenging.
Adairs (ASX:ADH) reported a 0.6% decline in group sales across the first 19 weeks of FY27 as consumer spending slowed.
The result marked an improvement from the 4.5% sales drop recorded during the first eight weeks of the financial year.
Sales at Mocka rose 12.2%, while core Adairs sales increased 1.7% over the 19-week period.
Focus on Furniture's written sales fell 15.1%, with profit margins trailing the prior year by 300 to 400 basis points.
Following the announcement, the Adairs share price was unchanged at $1.48.
Looking ahead, Adairs’ board said it expected the consumer environment to "remain challenging" through the peak trading period in the remaining seven weeks of the year, which includes Black Friday, Christmas and the Boxing Day sales.
The company stated that first-half trading conditions are expected to remain challenging amid high interest rates.
Adairs previously exited its unprofitable New Zealand business and initiated a succession search for a new CEO.
