Adairs Splits in Two as Core Brand Grows and Furniture Arm Drags
Fund managers say the FY26 update shows Adairs and Mocka back in growth, while Focus on Furniture remains the group's weak link
13 Jul 2026 · 3 min read
In short
Adairs' core homewares brand and online arm Mocka are back in sales and margin growth, per Pendal Group's FY26 update.
Focus on Furniture remains a drag on the group, posting weak sales, a sharp earnings decline and a goodwill impairment.
Ten Cap built its position in August 2025 as a bet on domestic cyclicals benefiting from operating leverage.
A tale of two brands is emerging inside Adairs, with the core homewares chain and online arm Mocka both back in growth even as furniture retailer Focus on Furniture keeps dragging on group earnings.
Ten Cap's early case for a cyclical turn
Ten Cap first built the position in August 2025 as part of a broader tilt toward domestic cyclicals, betting that disciplined cost control and solid balance sheets across companies like Adairs would translate into operating leverage once consumer demand stabilised.
That thesis was tested through the back half of 2025. LSN Capital Partners flagged in November that margin pressure from heavier promotional activity was weighing on the business, and framed the Black Friday and Christmas trading period as a genuine test of new management's refreshed strategy.
A brand split shows up in the FY26 numbers
By the middle of 2026, Pendal Group's read on Adairs' FY26 update showed the divergence playing out clearly across the group's three brands. The core Adairs brand delivered sales growth, positive like-for-like sales and improving margins, and Mocka posted strong double-digit growth. Focus on Furniture told a different story entirely, recording weak sales, a sharp earnings decline and a goodwill impairment that Pendal linked to a more competitive environment.
Adairs (ADH, -1.0%) provided an FY26 update showing growing divergence across its brands. The core Adairs brand performed well, delivering sales growth, positive like-for-like sales and improving margins, while online business Mocka delivered strong double-digit growth, but Focus on Furniture remained a drag, with weak sales, sharp earnings decline and a goodwill impairment reflecting a more competitive environment.
— Pendal Group, Newsletter, July 2026
What managers are watching next
Pendal's update reinforced that consumer demand in homewares is improving and that management is executing well at the core Adairs business. The open question for FY27 is whether Focus on Furniture can be stabilised or whether it continues to be the drag that offsets otherwise improving momentum at Adairs and Mocka.
Questions
How is Adairs' core brand performing compared with Focus on Furniture?
According to Pendal Group's July 2026 update, the core Adairs brand is delivering sales growth, positive like-for-like sales and improving margins, while Focus on Furniture is recording weak sales, a sharp earnings decline and a goodwill impairment.
How is Adairs' online business Mocka performing?
Pendal Group reported that Mocka delivered strong double-digit sales growth in the FY26 update, making it one of the stronger performing parts of the Adairs group.
Why did Ten Cap first invest in Adairs?
Ten Cap added to its Adairs position in August 2025 as part of a tilt toward domestic cyclicals, citing disciplined cost control, a solid balance sheet, and potential operating leverage as consumer demand stabilised.
5 managers, 5 comments, with each manager's latest recorded position.
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