Adairs slashes H1 sales guidance

Adairs has slashed its slash forecast for the fiscal first half, citing moderation in sales growth as the company pulled back on the frequency and intensity of its promotional activity.

The furniture retailer now estimates group sales of between $319.5 million and $331.5 million, down from the previous guidance of $324.5 million to $336.5 million. Group gross margin is estimated to range from 59 per cent to 59.5 per cent, compared to the previous range of 58.8 per cent to 59.6 per cent.

For the Adairs brand, the company anticipates sales to be between $225 million and $232 million, lower than the previous forecast of $229 million to $236 million.

Focus on Furniture sales guidance has been reduced to between $60 million and $63 million from the range of $62 million to $64 million, while Mocka’s sales guidance has been cut down to between $34.5 million and $36.5 million from the range of $33.5 million to $36.5 million.

The company, however, noted that its first half performance is heavily dependent on the sales season in the next 10 weeks, which include key events such as Adairs’ Linen Lover sales event, Black Friday, Christmas, and Boxing Day.

“We remain cautiously optimistic about the trading outlook for the rest of the half. All three businesses are well stocked, and our team are well prepared for the peak trading period ahead,” the company said.

Read more: Adairs books record sales in FY25