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Tag: focus on furniture

  • Adairs Chief Elle Roseby Resigns Following 39.4 Million Dollar Loss

    Adairs Chief Elle Roseby Resigns Following 39.4 Million Dollar Loss

    Adairs chief executive and managing director Elle Roseby has resigned following a fiscal 2026 statutory net loss of $39.4 million, the Australian homeware group announced on Tuesday.

    Roseby will stay in the post through her notice period ending in March 2027. Meanwhile, the board is conducting an executive search across its three retail brands.

    Executive changes and management shuffle

    Rachel Taylor stepped into the newly created role of executive general manager at the flagship Adairs brand. Chief financial officer Matt Edmonds expanded his duties. He now oversees daily operations alongside his finance brief.

    She joined Adairs in January 2025 after running Country Road and Trenery at Country Road Group. The board said the restructured team will maintain operational momentum while recruiting a permanent successor.

    With Elle continuing to lead the business and supporting the transition, we are well placed to maintain momentum through an orderly change in leadership.

    Impairment charges drag down balance sheet

    An asset impairment against Focus on Furniture drove the $39.4 million statutory loss. Softer spending on bulky home goods and higher borrowing costs reduced the book value of the furniture unit. That hit the bottom line despite sales gains at the core Adairs banner and online brand Mocka.

    Homeware operators across the region face tighter discretionary spending as higher living costs deter shoppers from large interior purchases. For Adairs, the non-cash write-down exposed the volatility of furniture acquisitions compared to bedding and linen sales.

    Retreat from New Zealand retail

    During her tenure, Roseby closed all seven Adairs brick-and-mortar stores in New Zealand to concentrate capital and logistics on Australia. Exiting physical shops across the Tasman Sea ended an expensive regional footprint. Offshore demand shifted to e-commerce channels.

    Landlords and suppliers now see a business focused exclusively on Australian retail parks and shopping malls. Eliminating loss-making overseas leases reduced fixed property costs. However, it leaves the company dependent on domestic consumer confidence.

    What the leadership transition leaves open

    The incoming chief executive inherits three distinct businesses in Adairs, Mocka, and Focus on Furniture. Stabilising margins across the bulky furniture portfolio represents the primary test for the next administration.

    Roseby will continue running group operations and supporting Taylor and Edmonds through to her departure in March 2027.

  • Adairs Lifts FY26 Revenue to $641.7 Million Despite Furniture Slump

    Adairs Lifts FY26 Revenue to $641.7 Million Despite Furniture Slump

    Adairs Limited lifted group revenue 3.8 per cent to $641.7 million in FY26 as solid sales at its core homewares brand and Mocka offset a furniture slump.

    Underlying net profit after tax rose to $34.6 million, though non-cash impairment charges dragged the Australian retailer to a statutory net loss of $39.4 million.

    The flagship Adairs banner drove the performance. Sales grew 3.9 per cent to $459.2 million, lifting underlying earnings before interest and tax 14.9 per cent to $41.1 million. Gross margin reached 60.9 per cent, while EBIT margin widened 90 basis points to 9 per cent.

    Mocka expanded at a faster clip. Revenue jumped 22.9 per cent to $71.2 million and underlying EBIT climbed 32.1 per cent to $10.1 million, supported by catalogue expansion and pricing adjustments. The brand also opened physical trial stores in June.

    Supply snags hit furniture earnings

    Focus on Furniture weighed on group returns. Sales dropped 5.6 per cent to $111.3 million and underlying EBIT plunged 67.6 per cent after a third-quarter leadership transition disrupted inventory purchasing, thinned showroom floor stock and stretched customer delivery timelines.

    The group installed a new divisional chief executive and restarted supplier ordering in April and May. Inbound stock shipments are scheduled to rebuild availability through the second quarter of FY27, with fresh furniture collections arriving from October.

    Store network plans and debt reduction

    Discretionary retailers across Australasia continue to grapple with uneven consumer sentiment by tightening supply chains and defending gross margins. Adairs countered the furniture drag by trimming net debt by $20 million to $47.6 million, funding a 9.5 per cent increase in full-year dividends to 11.5 cents per share.

    Network changes will remain selective in the year ahead. The group plans to open seven to 10 stores, refurbish four to six, and shut between two and five underperforming sites, while Focus on Furniture will focus on relocations rather than adding new stores before earnings recover across FY28.