(Updates to add stock movement in the headline and the last paragraph)
Adairs (ASX:ADH) expects fiscal 2026 group underlying earnings before interest and tax (EBIT) in the range of AU$53.5 million to AU$55.5 million, down 1.3% at the midpoint on fiscal 2025, according to a Wednesday Australian bourse filing.
The company anticipates group sales in the range of AU$640 million to AU$641.5 million, up 3.7% at the midpoint.
The company said it expects to recognize a non-cash impairment of the Focus on Furniture goodwill and brand intangible in the range of AU$62 million to AU$68 million, or AU$56 million to AU$60 million after tax, to be excluded from underlying earnings.
After the impairment and other significant items, the company expects to report a statutory net loss after tax of about AU$43 million for fiscal 2026, per the filing.
The company's shares fell around 4% in recent Wednesday trade.