Adairs Ltd. · ASX:ADH
Adairs — H1 FY2026 Earnings Presentation
33 slides from Adairs's earnings presentation, Feb 23, 2026
Slide 1: Adairs Limited 1H FY26 Results Presentation
Adairs Limited 1H FY26 Results Presentation Adairs Focus 23 February 2026 Elle Roseby Managing Director & Group Chief Executive Officer Ashley Gardner Group Chief Financial Officer (Outgoing) Matt Edmonds Group Chief Financial Officer (Incoming) Important Information In this presentation, references
Slide 2: 1H FY26 Group Overview
1 1H FY26 Group Sales Performance Group Overview Group sales of $329m, up +5.9%. Adairs up +4.0%, Focus up +1.9%, Mocka up +29.8%. Group Earnings Performance Underlying EBIT down - 9.1% to $30.0m. Adairs down -10.0,%, Focus down - 31.7%, Mocka up +45.5%. Balance Sheet Net debt down - $14.0m during 1
Slide 3: 1H FY26 Overview
1H FY26 Overview 2 The Group achieved sales of $329m for 1H FY26 up +5.9 %. Adairs built sales and margin momentum through Q2 and Mocka achieved another outstanding result. New management at Focus on Furniture provides the opportunity to reset this business and return to growth . Financial ▪ Sales w
Slide 4: 1H FY26 Overview
1H FY26 Overview 3 Operations & ▪ Linen Lover members continue to contribute ▪ Progress made on improving the customer ▪ Warehouse efficiencies continue to drive inventory >80% of sales with more than 1 million offer with the introduction of “made to order” improved customer service. members (net in
Slide 5: 1H FY26 Financial Performance
1H FY26 Financial Performance
Slide 6: Group – 1H FY26 financial performance
Group – 1H FY26 financial performance 5 1H FY26 1H FY25 Change ($ million) 26 weeks 26 weeks ($ million) % TOTAL SALES Adairs 229.4 220.5 +8.9 +4.0% ▲ Focus on Furniture 63.1 61.9 +1.2 +1.9% ▲ Mocka 36.5 28.1 +8.4 +29.8% ▲ GROUP 329.0 310.5 +18.5 +5.9% ▲ UNDERLYING EBIT 1 Adairs 18.6 20.6 -2.0 -10.0
Slide 7: Adairs
Adairs 6 Strong execution of ‘Big Moments ’ and disciplined inventory management ($ million) 1H FY26 1H FY25 delivered record sales in 1H . Margin improved throughout the half after deep Underlying 1 26 weeks 26 weeks Change clearance activity in Q1. Store sales 163.0 162.0 +0.6% ► Total sales of $2
Slide 8: Adairs – a tale of two quarters (Q1 v Q2)
Adairs – a tale of two quarters (Q1 v Q2) 7 After aggressive clearance activity in Q1, where gross margin declined - 300bps on the prior year, Q2 benefited from improved inventory quality and higher margins . The improved margins through Q2 are expected to continue into 2H FY26. Q1 FY26: “Clean hous
Slide 9: Focus on Furniture
Focus on Furniture 8 After another challenging result in 1H FY26, the business is now resetting for 1H FY26 1H FY25 ($ million) improved performance under new leadership . Underlying 1 26 weeks 26 weeks Change ► Total sales of $63.1m up +1.9%, (LFL sales - 3.3%) with good results over Black Friday a
Slide 10: Mocka
Mocka 9 Momentum maintained with sales up +29.8% and EBIT up 45.5%. Standalone retail ($ million) 1H FY26 1H FY25 stores to open in CY26 with two Australian stores confirmed. Underlying 1 26 weeks 26 weeks Change ► Record sales of $36.5m, up +29.8%, driven by product innovation and continued growth
Slide 11: Balance sheet and cash flow
Balance sheet and cash flow 10 Inventories ($ million) Dec 24 Jun 25 Dec 25 ► Inventories across the Group declined with improved stockturns and active Inventories 97.6 96.0 93.3 clearance strategies throughout the period. Trade and other payables (63.4) (57.9) (59.6) Capital and project expenditure
Slide 12: Operational highlights for the half
Operational highlights for the half
Slide 13: Adairs – Strategy Execution
Adairs – Strategy Execution 12 Key Seasonal Events Elevating the Adairs Brand Playing to win in the moments that matter Storytelling and experience to inspire customers. ► Create new reasons to shop Adairs to grow share and ► Enhanced Adairs’ design handwriting with a signature style and elevated at
Slide 14: Adairs – Strategy Execution
Adairs – Strategy Execution 13 Linen Lover Program Business Optimisation Program Delivering even greater value to Linen Lover members Reducing CODB% and lifting productivity ► More than 1 million paid Linen Lover members contributing more Over the next 12 months we will progress a focused set of ini
Slide 15: Focus on Furniture – Strategy Execution
Focus on Furniture – Strategy Execution 14 New leadership New stores and store refresh program ► New CEO (Candice Deale, ex Freedom Furniture and ► 6 of the top 15 stores have now been refurbished . This cohort have Fantastic Furniture) appointed in November 2025. outperformed the rest of the store
Slide 16: Focus on Furniture – Strategy Execution
Focus on Furniture – Strategy Execution 15 Product strategy Improved Marketing and Visual merchandising Design - led, accessible value More aspirational, elevated customer communication ► Strengthening product range appeal through curation and ► Targeted marketing to expand customer reach and drive
Slide 17: Mocka – Strategy Execution
Mocka – Strategy Execution 16 Product Innovation Mocka’s product strategy delivered strong momentum in 1H FY26, with the successful introduction of new categories —outdoor, sofas/large items, youth and lighting —and continual ‘newness’ in existing categories driving sales and margin growth.
Slide 18: Mocka – Strategy Execution
Mocka – Strategy Execution 17 Brand Investment: Mocka continued to strengthen its brand through targeted marketing and PR activity, improving awareness among core customer groups, refining the position of the brand and investing for further growth. * Brand awareness and health for Females 25 - 44 LT
Slide 19: Mocka – Strategy Execution
Mocka – Strategy Execution 18 Retail store strategy New Zealand market ► Mocka’s first standalone store will open in ► Shop - in- Shop (Tower Junction, NZ) has served as an Maroochydore, Queensland in May 2026. effective omnichannel lab, delivering strong in - store ► Second store will open in Morni
Slide 20: Trading update and Outlook
Wai NN awn Trading update and Outlook
Slide 21: Trading update and outlook
Trading update and outlook 20 The first seven weeks of 2H FY26 have delivered Group sales growth of +6.4% (cycling +9.2% in PCP). Real - time sales 2H FY26 2H FY25 General ► The Group is well positioned to build on the sales and margin (unaudited) (first 7 weeks) (first 7 weeks) Outlook momentum fro
Slide 22: Questions?
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Slide 23: Appendices
APPENDICES 1. Group income statement reconciliation 2. Group income statement 3. Group cash flow reconciliation 4. About the Adairs Group 5. Store footprint – Adairs 6. Store footprint – Focus on Furniture 7. Adairs Data & Technology Upgrade 8. Glossary
Slide 24: Appendix 1: Group income statement reconciliation
Appendix 1: Group income statement reconciliation 23 1H FY26 RECONCILIATION 1H FY25 RECONCILIATION Underlying SaaS cloud Statutory Underlying Statutory WMS transition ($ million) 1H FY26 AASB 16 impact computing 1H FY26 1H FY25 AASB 16 impact 1H FY25 costs 26 weeks projects costs 26 weeks 26 weeks 2
Slide 25: Appendix 2: Group income statement
Appendix 2: Group income statement 24 Adairs Focus Mocka Group ($ million) 1H FY26 1H FY26 1H FY26 1H FY26 1H FY25 Underlying1 26 weeks 26 weeks 26 weeks 26 weeks 26 weeks Change Store sales 163.0 58.8 1.2 223.0 219.9 +1.4% Online sales 66.4 4.3 35.3 106.0 90.6 +17.0% Total sales 229.4 63.1 36.5 329
Slide 26: Appendix 3: Group cash flow reconciliation
Appendix 3: Group cash flow reconciliation 25 1H FY26 RECONCILIATION Underlying Underlying ($ million) 1H FY26 1H FY25 SaaS cloud Underlying computing AASB 16 Statutory Underlying ($ million) 1H FY26 projects impact 1H FY26 1H FY25 Underlying EBITDA 36.9 39.1 costs Significant items (cash impact) -
Slide 27: Appendix 4: About the Adairs Group
Appendix 4: About the Adairs Group 26 Adairs Limited (ASX: ADH) is a leading omni-channel specialty retailer of home furnishings, furniture and home decoration products operating across Australia and New Zealand Common to all three businesses ► Design-led (in-house) ► Exclusive and differentiated pr
Slide 28: Appendix 5: Store footprint – Adairs
Appendix 5: Store footprint – Adairs 27 1H FY26 ACTIVITY Store count Jun 25 New Closed Upsize Refurb Dec 25 VIC 50 - - 1 - 50 NSW 42 - - 1 - 42 QLD 33 - - - - 33 WA 21 1 (1) - - 21 1 SA 8 - - - - 8 ACT 4 - - - - 4 TAS 2 - - - - 2 NT 1 - - - - 1 NZ 7 1 - - - 8 22 Total 168 2 (1) 2 - 169 11 GLA (m2) 7
Slide 29: Appendix 6: Store footprint – Focus on Furniture
Appendix 6: Store footprint – Focus on Furniture 28 Priority markets QLD Current stores 3 Potential # 8-12 National furniture businesses typically have 50 - 60 stores (Adairs has 67 homemaker stores). We believe there is the potential to operate a network of 50 - 60 NSW / ACT profitable Focus on Fur
Slide 30: Appendix 7: Adairs Data & Technology Upgrade
Appendix 7: Adairs Data & Technology Upgrade 29 The Adairs business unit’s investments in technology will deliver material improvements in process efficiency and customer experience. At the centre of the technology upgrade program is a new ERP system, which has commenced and will be delivered in wav
Slide 31: Appendix 7: Adairs Data & Technology Upgrade – Functional benefits
Appendix 7: Adairs Data & Technology Upgrade – Functional benefits 30 The data and technology upgrade will enable operational efficiency across the business whilst facilitating better decision - making and enhancing customer experience in stores and online. It will be easier to access and connect to
Slide 32: Appendix 8: Glossary
Appendix 8: Glossary 31 Term Meaning Term Meaning ASP Average selling price LFL Like for like LTM Last twelve months ATV Average transaction value Mosaic In a retail context this is a consumer classification method that groups CAC Customer acquisition cost segmentation customers by lifestyle, demogr
Slide 33: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is general background information about Adairs Limited (ABN 50 147 375 451) (Adairs) and its activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. It should