Adairs, the homeware and furniture retailer with 170 stores in ANZ, is continuing its reset strategy, with sales surging while profits suffer.

For the first half of the 2026 financial year, ending December 28, Adairs saw its group revenues climb to $329 million, a 5.9 per cent increase year-on-year. These sales came at a gross profit of $153.9 million, a 3.6 per cent increase, and left a net profit after tax (NPAT) of $12.8 million.

Despite the record sales, the NPAT figure was a 33.8 per cent decrease year-on-year.

“Whilst the results across the brands were mixed, I’m pleased with the material progress we have made and the significant decisions we have actioned to reposition and reset our businesses,” MD and CEO of Adairs Group, Elle Roseby, said.

The group’s kid-focused brand Mocka saw the largest sales growth, with a 29.8 per cent increase in six months. The first Mocka store opening is planned for May 2026.

Like-for-like sales at Focus on Furniture (FoF), the group’s affordable furniture brand, fell by 3.3 per cent. Adairs said that trade was “soft” outside of key sales periods. FoF appointed Candace Deale as CEO in November 2025 to support the brand’s transition.

Adairs is now eyeing a continued expansion of its retail network after clearing inventory through the first half of the fiscal year. The company added that the high clearance activity through Q1 impacted its gross margin, before recovering in Q2.

Despite six or seven Adairs-bannered store closures planned for the second half of the year, the group is looking to add a further three to four stores to its portfolio. At FoF, the group is looking to add one new store and to refurbish up to five more.