Full Year 2026 Adairs Ltd Earnings Call

August 24, 2026

Speaker #2: Thank you for standing by, and welcome to the Adairs Limited Full Year 2026 Results Conference Call. All participants are on listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator 2: Thank you for standing by and welcome to the Adairs Limited Full Year Results 2026 conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ms. Elle Roseby, Managing Director and Group Chief Executive Officer. Please go ahead, ma'am.

Operator: Thank you for standing by and welcome to the Adairs Limited Full Year Results 2026 Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ms. Elle Roseby, Managing Director and Group Chief Executive Officer. Please go ahead, ma'am.

Speaker #2: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Ms. L.

Speaker #2: Roseby, Managing Director and Group Chief Executive Officer. Please go ahead, ma'am.

Speaker #3: Good morning, and thank you for joining us for Adairs Limited's FY26 full-year results. I’m L. Roseby, Group CEO and Managing Director of Adairs, joined by Matt Edmonds, our Group Chief Financial Officer.

Elle Roseby: Well, good morning and thank you for joining us for Adairs Limited FY26 full-year results. I am Elle Roseby, Group CEO and Managing Director of Adairs, joined by Matt Edmonds, our Group Chief Financial Officer. This morning we lodged our FY26 results with the ASX. We will speak for around 20 minutes and then we will take the questions. The running order, I will cover the group overview. Matt will take you through the group and brand financials, and then I will come back for the brand highlights, the Vision 2030 strategy update and current trading and outlook. So slides 3 to 4, the group overview and FY26 group performance. I am pleased with the FY26 results across Adairs and Mocka, with both businesses delivering strong sales and EBIT performance. This performance reflects sharper and more relevant ranges, improved margins, stronger customer engagement and greater operating discipline and a more deliberate approach to capital allocation.

Elle Roseby: Well, good morning and thank you for joining us for Adairs Limited FY26 full-ear results. I am Elle Roseby, Group CEO and Managing Director of Adairs, joined by Matt Edmonds, our Group Chief Financial Officer. This morning we lodged our FY26 results with the ASX. We will speak for around 20 minutes and then we will take the questions. The running order, I will cover the group overview. Matt will take you through the group and brand financials, and then I will come back for the brand highlights, the Vision 2030 strategy update and current trading and outlook. So slides 3 to 4, the group overview and FY26 group performance.

Speaker #3: This morning, we lodged our FY26 results with the ASX. We'll speak for around 20 minutes, and then we'll take questions. For the running order, I'll cover the group overview; Matt will take you through the group and brand financials, and then I'll come back for the brand highlights, the Vision 2030 strategy update, and current trading and outlook.

Speaker #3: So, slide 3 to 4, the group overview and FY26 group performance. I'm pleased with the FY26 results across Adairs and MoCA, with both businesses delivering strong sales and EBIT performance.

Elle Roseby: I am pleased with the FY26 results across Adairs and Mocka, with both businesses delivering strong sales and EBIT performance. This performance reflects sharper and more relevant ranges, improved margins, stronger customer engagement and greater operating discipline and a more deliberate approach to capital allocation.

Speaker #3: This performance reflects sharper and more relevant ranges, improved margins, stronger customer engagement, and greater operating discipline, with a more deliberate approach to capital allocation.

Speaker #3: Focus on Furniture had a particularly challenging year, most notably in Q4. I'll take you through that in more detail later in the presentation, because I think it's really important to understand the context around that performance and the actions we are taking in response.

Elle Roseby: Focus on Furniture had a particularly challenging year, most notably in Q4. I will take you through that in more detail later in the presentation because I think it is really important to understand the context around that performance and the actions we are taking in response. Group sales grew 3.8% to AUD 641.7 million. Underlying EBITDAR was AUD 68.7 million, up 1%. Underlying EBIT of AUD 55 million was broadly flat and underlying net profit after tax rose 1.7% to AUD 34.6 million. Net debt reduced by AUD 20 million and dividends grew 9.5% on FY25. The statutory result is a loss of AUD 39.4 million driven by significant items that are predominantly non-cash.

Speaker #3: Group sales grew 3.8% to $641.7 million. Underlying EBITDA was $68.7 million, up 1%. Underlying EBIT of $55 million was broadly flat, and underlying net profit after tax rose 1.7% to $34.6 million.

Speaker #3: Net debt reduced by $20 million and dividends grew 9.5% on FY25. The statutory loss is sorry, the statutory result is a loss of $39.4 million, driven by significant items that are predominantly non-cash.

Speaker #3: The largest being the impairment of focus on furniture goodwill and brand intangibles. Matt will take you through the breach later. These results are consistent with the trading update we released on the 8th of July and finish at the top end of it.

Elle Roseby: The largest being the impairment of Focus on Furniture goodwill and brand intangibles, and Matt will take you through the bridge later. These results are consistent with the trading update we released on 8 July and finish at the top end of it. Group sales of AUD 641.7 million were marginally above the top of the AUD 640 to AUD 641.5 million guidance range with Adairs and Mocka both above the top of their sales ranges and Focus within its range. Group underlying EBIT of AUD 55 million was in the upper half of the range. Net debt of AUD 47.6 million came in better than the approximate AUD 49 million indicated. The impairment, the other significant items and statutory loss all landed within the ranges stated in July.

Speaker #3: Group sales of $641.7 million were marginally above the top of the $640 to $641.5 million guidance range, with Adairs and MoCA both above the top-of-year sales ranges, and Focus within its range.

Speaker #3: Group underlying EBIT of $55 million was in the upper half of the range, and net debt of $47.6 million came in better than the approximate $49 million indicated. The impairment, the other significant items, and the statutory loss all landed within the ranges flagged in July.

Speaker #3: Overall, our group results are in line with the July update and slightly ahead on sales, net debt, and statutory outcomes. Slide 5: Group overview and performance.

Elle Roseby: Overall, our group results are in line with the July update and slightly ahead on sales, net debt and statutory outcomes. Slide 5, group overview and performance. Slide 5 shows the three brands and each are at different stages. Adairs, our largest brand, delivered record sales of AUD 459.2 million, up 3.9% and pleasingly through improved cost efficiencies and margin growth, underlying EBIT was up 14.9% to AUD 41.1 million. Mocka continuing its growth trajectory, saw sales of AUD 71.2 million, up 22.9%, with EBIT up 32.1% to AUD 10.1 million. Focus on Furniture, the business is in turnaround. Sales of AUD 111.3 million, down 5.6%, and EBIT of AUD 3.8 million. Adairs and Mocka together now generate over 90% of group earnings and both grew earnings at expanding margins. The turnaround task sits Focus, and I will cover the plan in the brand section.

Speaker #3: Slide 5 shows the three brands, and each are at different stages. Adairs, our largest brand, delivered record sales of $459.2 million, up 3.9%, and pleasingly, through improved cost efficiencies and margin growth, underlying EBIT was up 14.9% to $41.1 million.

Speaker #3: MoCA, continuing its growth trajectory, saw sales of $71.2 million, up 22.9%, with EBIT up 32.1% to $10.1 million. And focusing on furniture, the business is in turnaround, with sales of $111.3 million, down 5.6%, and EBIT of $3.8 million.

Speaker #3: Adairs and MoCA together now generate over 90% of group earnings, and both grew earnings at expanding margins. The turnaround task sits focused, and I will cover the plan in the brand section.

Speaker #3: So, on slide 6, focus on Furniture. So, what happened in H2, and specifically Q4? Let me address Focus directly. A year ago, we said we expected improved outcomes for Focus in FY26, and we did not deliver them.

Elle Roseby: On slide 6, Focus on Furniture. What happened in H2 and specifically Q4? Let me address Focus directly. A year ago, we said we expected improved outcomes at Focus in FY26, and we did not deliver them. The year had two distinct phases. Through the first three quarters, delivered sales were broadly flat, up 0.2%, and in Q4, sales fell 25.5%. There were two issues that drove that decline. The first was a difficult leadership transition. For the incoming management team, the handover was limited, with reduced visibility of inventory planning, operating processes, and management information. This lack of data had a material impact on decision-making and interrupted inventory ordering. Coupled with overtightened store discounting discretion, this disrupted trade through peak Q4 trading. The second issue predates the transition.

Speaker #3: The year had two distinct phases. Through the first three quarters, delivered sales were broadly flat, up 0.2%, and in the fourth quarter, sales fell 25.5%.

Speaker #3: And there were two issues that drove that decline. The first was a difficult leadership transition. For the incoming management team, the handover was limited.

Speaker #3: With reduced visibility of inventory planning, operating processes, and management information, this lack of data had a material impact on decision-making and interrupted inventory ordering. Coupled with over-tightened store discounting discretion, this disrupted trade through peak fourth-quarter trading.

Speaker #3: And the second issue predates the transition: stale range and underinvestment in store presentation behind a multi-year pattern of gradual share loss. The strength's focus is known for value and quality, which had been impacted.

Elle Roseby: Stale range and underinvestment in store presentation behind a multi-year pattern of gradual share loss. The strengths Focus is known for, of value and quality, had been impacted. The range has fallen behind on the core offer, fashionability and variety. Price renewal and availability is a primary lever in the turnaround. On the response, a sustainable management structure is in place with group executive oversight and a strengthened business unit advisory committee, including non-executive director participation. Ordering cadence was rebuilt through April and May, and inbound stock is restoring availability and lead times through Q2 FY27. Discounting discretion has been returned to store teams under clear governance. The first exclusive design-led collections land in stores from October with regular monthly injections throughout 2027.

Speaker #3: The range has fallen behind on the core offer, fashionability, and variety, and product renewal and availability is a primary lever in the turnaround. In response, a sustainable management structure is in place, with group executive oversight and a strengthened business unit advisory committee, including non-executive director participation.

Speaker #3: Ordering cadence was rebuilt through April and May, and inbound stock is restoring availability and lead times through Q2 FY27. Discounting discretion has been returned to store teams under clear governance.

Speaker #3: The first exclusive design-led collections land in stores from October, with regular monthly injections throughout '27. A VM store presentation reset will be completed throughout Q2 across the network, and we have overlaid an additional light refurbishment to the Frankston store, which has outperformed the network. These findings will evolve the store design experience going forward.

Elle Roseby: A VM store presentation reset will be completed throughout Q2 across the network. We have overlaid an additional light refurbishment to the Frankston store, which has outperformed the network, and these findings will evolve the store design experience going forward. The market for larger ticket furniture was softer during the year. However, we attribute the shortfall primarily to factors within our control. I will now hand over to Matt to take you through the financials.

Speaker #3: The market for larger-ticket furniture was softer during the year. However, we attribute the shortfall primarily to factors within our control. I'll now hand over to Matt to take you through the financials.

Speaker #2: Thanks, Al, and good morning, everyone. I'll start with the divisional results on slide 8, with group underlying EBIT up $55 million. Broadly flat on last year, down 0.4%.

Matt Edmonds: Thanks, Elle, and good morning, everyone. I will start with the divisional results on slide 8, with group underlying EBIT at AUD 55 million, broadly flat on last year, down 0.4%. Within that, Adairs and Mocka together added AUD 7.7 million of earnings, while Focus declined AUD 8 million versus the prior year. In Adairs, sales of AUD 459.2 million was up 3.9%, 4% in H1 and 3.6% in H2. With like-for-like store sales up 1.4% and online up around 9% to AUD 132.3 million, driven by strong click and collect growth, which now accounts for 4% of total sales. Gross margin was 60.9%, down 10 basis points on the full year. Within that, margin did decline 300 basis points in Q1 on deliberate clearance activity to reset the inventory, and then pleasingly recovered each quarter thereafter, with H2 gross margin up 150 basis points on the prior year.

Speaker #2: And within that, Adairs and MoCA together added $7.7 million of earnings, whilst Focus declined $8 million versus the prior year. In Adairs, sales of $459.2 million were up 3.9%.

Speaker #2: 4% in the first half and 3.6% in the second, with like-for-like store sales up 1.4% and online up around 9% to $132.3 million, driven by strong click-and-collect growth, which now accounts for 4% of total sales.

Speaker #2: Gross margin was 60.9%, down 10 basis points for the full year. Within that, margin did decline 300 basis points in the first quarter on deliberate clearance activity to reset the inventory, and then, pleasingly, recovered each quarter thereafter, with second half gross margin up 150 basis points on the prior year.

Speaker #2: This reflected elevated ranges, pricing discipline, and reduced promotional depth. Total cost of doing business was also a highlight, reducing by 100 basis points, reflecting continued efficiency in the supply chain, with total cost per unit down by 11% and improved store productivity, which was up 5.2%.

Matt Edmonds: This reflected elevated ranges, pricing discipline, and reduced promotional depth. Total cost of doing business was also a highlight, reducing by 100 basis points, reflecting continued efficiency in the supply chain, with total cost per unit down by 11% and improved store productivity, which was up 5.2%. Underlying EBITDA rose 12.8%, and underlying EBIT of AUD 41.1 million was up 14.9% at a 9% margin, up 90 basis points. Importantly, H2 EBIT at Adairs grew 48.9% on the prior year, driven by strong margin expansion and disciplined strong cost management. Inventory closed at AUD 66.4 million, broadly flat against 3.9% sales growth. Turning to Mocka, they recorded sales of AUD 71.2 million, up 22.9%, 29.8% in H1 and 16.4% in H2, led by continued strength in Australia at +38% and New Zealand flat at +0.4% as the offer there is reset.

Speaker #2: Underlying EBITDA rose 12.8%, and underlying EBIT of $41.1 million was up 14.9% at a 9% margin, up 90 basis points. Importantly, second half EBIT at Adairs grew 48.9% on the prior year, driven by strong margin expansion and disciplined, strong cost management.

Speaker #2: Inventory closed at $66.4 million, broadly flat against 3.9% sales growth. Turning to MoCA, they recorded sales of $71.2 million, up 22.9%; 29.8% in the first half, and 16.4% in the second.

Speaker #2: Led by continued strength in Australia at plus 38%, and New Zealand flat at plus 0.4% as the offer there is reset. Growth came with margin expansion, with gross margin of 60.2%, up 80 basis points.

Matt Edmonds: Growth came with margin expansion, with gross margin of 60.2%, up 80 basis points, on product innovation at higher initial margins and increased share of full price sales. Cost of doing business was flat with warehouse and freight efficiencies funding continued customer acquisition marketing investments. Underlying EBIT rose 32.1% to AUD 10.1 million at a 14.1% margin, up 100 basis points with inventory closing 14.7% lower. In Focus, sales were AUD 111.3 million, down 5.6%, with the order book closing the year at AUD 11.2 million. Gross margin was 50.4%, down 40 basis points on the prior year. The sales decline in Q4 came through traffic and conversion, which is why product renewal and availability is the primary lever identified in our turnaround. Cost of doing business rose 590 basis points, reflecting de-leverage on soft like-for-like sales, plus the annualized cost of the new Victorian distribution center and customer support office.

Speaker #2: On product innovation at higher initial margins and increased share of full-price sales. The cost of doing business was flat, with warehouse and freight efficiencies funding continued customer acquisition, marketing, and investment.

Speaker #2: Underlying EBIT rose 32.1% to $10.1 million, at a 14.1% margin, up 100 basis points, with inventory closing 14.7% lower. In Focus, sales were $111.3 million, down 5.6%, with the order book closing the year at $11.2 million.

Speaker #2: Gross margin was 50.4%, down 40 basis points on the prior year. The sales decline in the fourth quarter came through traffic and conversion, which is why product renewal and availability is the primary lever identified in our turnaround.

Speaker #2: Cost of doing business rose 590 basis points, reflecting deleverage on soft like-for-like sales, plus the annualized cost of the new Victorian distribution center and customer support office.

Matt Edmonds: Cost of doing business rose 590 basis points, reflecting de-leverage on soft like-for-like sales, plus the annualized cost of the new Victorian distribution center and customer support office.

Speaker #2: Underlying EBIT ended at $3.8 million, down 67.6%, at a 3.4% margin. Importantly, on a half-year basis, that comprises a first half profit of $5.8 million and a second half loss of around $2 million.

Matt Edmonds: Underlying EBIT ended at AUD 3.8 million, down 67.6% at 3.4% margin. Importantly, on a H1 basis, that comprises a H1 profit of AUD 5.8 million and a H2 loss of around AUD 2 million. That H2 performance is reflected in the impairment assessment, which I will cover on slide 11. Turning to slide 9, group level sales were AUD 641.7 million, up 3.8%, with the store network reducing by a net 6 stores from 194 down to 188, reflecting the disciplined portfolio management including the Adairs New Zealand exit. Underlying EBITDA was AUD 68.7 million, up 1%. Depreciation rose 7% on distribution and store investments, taking underlying EBIT to the AUD 55 million already quoted. Net interest fell 14.7% on lower average debt, with underlying NPAT, excuse me, at AUD 34.6 million, up 1.7% of underlying earnings per share at AUD 0.195. Moving to slide 10, the balance sheet strengthened during the year.

Speaker #2: That second half performance is reflected in the impairment assessment, which I'll cover on slide 11. Turning to slide 9, group-level sales were $641.7 million, up 3.8%, with the store network reducing by a net 6 stores from 194 down to 188, reflecting the disciplined portfolio management, including the Adairs New Zealand exit.

Speaker #2: Underlying EBITDA was $68.7 million, up 1%. Depreciation rose 7% on distribution and store investment, taking underlying EBIT to the $55 million already quoted. Net interest fell 14.7% on lower average debt, with underlying NPAT—excuse me—at $34.6 million, up 1.7%, and underlying earnings per share at 19.5 cents.

Matt Edmonds: Net interest fell 14.7% on lower average debt, with underlying NPAT, excuse me, at AUD 34.6 million, up 1.7% of underlying earnings per share at AUD 0.195. Moving to slide 10, the balance sheet strengthened during the year.

Speaker #2: Moving to slide 10, the balance sheet strengthened during the year. Net debt was $47.6 million, down $20 million versus the prior year, now at 0.7 times underlying EBITDA—the lowest level in over four years.

Matt Edmonds: Net debt was AUD 47.6 million, down AUD 20 million versus the prior year, now at 0.7 times underlying EBITDA, the lowest level in over 4 years. Inventory closed at AUD 91.2 million, down 5%, and by brand, Adairs and Mocka positions are clean and current following the Q1 clearance reset. At Focus, the age stock clearance is nearing completion. Ordering has been reestablished and stock is rebuilding with availability recovering into Q2. Underlying operating cash flow was AUD 65 million against AUD 30.4 million last year and a cash realization ratio of approximately 119%. Working capital released AUD 14 million, led by the inventory reduction and payables timing. That funded AUD 17 million of debt repayment and AUD 13.4 million of dividends. At the full year, dividends announced at AUD 0.115, fully franked, up 9.5% on FY25, representing 59% of underlying NPAT, and the dividend reinvestment plan remains available.

Speaker #2: Inventory closed at $91.2 million, down 5%. By brand, Adairs and MoCA positions are clean and current, following the first quarter clearance reset. At Focus, the aged stock clearance is nearing completion, ordering has been re-established, and stock is rebuilding, with availability recovering into Q2.

Speaker #2: Underlying operating cash flow was $65 million against $30.4 million last year, and the cash realization ratio was approximately 119%. Working capital released $14 million, led by the inventory reduction and payables timing. That funded $17 million of debt repayment and $13.4 million of dividends.

Speaker #2: For the full year, dividends were announced at 11.5 cents, fully franked, up 9.5% on FY25, representing 59% of underlying NPAT, and the dividend reinvestment plan remains available.

Matt Edmonds: At the full year, dividends announced at AUD 0.115, fully franked, up 9.5% on FY25, representing 59% of underlying NPAT, and the dividend reinvestment plan remains available.

Speaker #2: Moving on to slide 11, which bridges the underlying results to statutory loss. Underlying NPAT was $34.6 million. The focus on furniture impairment deducted $56.7 million after tax, and technology upgrade costs, which were expensed as incurred—consistent with prior periods—and the $2.8 million of legacy store software write-offs, deduct $13 million. Double ASB 16 lease accounting deducts $2.4 million, and the Adairs New Zealand exit costs deduct a further $1.8 million.

Matt Edmonds: Moving on to slide 11, which bridges the underlying result to statutory loss. Underlying NPAT was AUD 34.6 million. The Focus on Furniture impairment deducted AUD 56.7 million after tax and technology upgrade costs, which were expensed as incurred consistent with prior periods, and for AUD 2.8 million of legacy store software write-offs deduct AUD 13 million. AASB 16 lease accounting deducts AUD 2.4 million and the Adairs New Zealand exit costs deducting a further AUD 1.8 million. That reconciles to the statutory loss of AUD 39.4 million or AUD 0.222 per share. On the impairment, following the Q4 deterioration, we tested the Focus cash generating unit at the end of the year on a value in use basis. The charge is AUD 63.5 million pre-tax, which comprises of goodwill of AUD 41 million, sorry, AUD 41 million written down to nil and AUD 22.5 million against the brand intangible.

Speaker #2: That reconciles to the statutory loss of $39.4 million, or 22.2 cents per share. On the impairment, following the fourth quarter deterioration, we tested the Focus cash-generating unit at the end of the year on a value-in-use basis. The charge is $63.5 million pre-tax, which comprises goodwill of $41 million.

Matt Edmonds: The charge is AUD 63.5 million pre-tax, which comprises of goodwill of AUD 41 million, sorry, AUD 41 million written down to nil and AUD 22.5 million against the brand intangible.

Speaker #2: Sorry, $41 million written down to nil, and $22.5 million against the brand intangible. The impairment is non-cash and has no effect on the group's banking covenants or capacity to pay dividends.

Matt Edmonds: The impairment is non-cash and has no effect on the group's banking covenants or capacity to pay dividends. In FY26, Adairs New Zealand contributed, sorry, in FY26, Adairs New Zealand contributed AUD 12.8 million of revenue and an underlying EBIT loss of AUD 0.8 million, which we recognized additional exit costs of AUD 2.5 million. The exit is expected to be EBIT accretive from FY27 with no material cost tail. Approximately 3% of sales will leave the Adairs base, so reported growth in FY27 will optically soften. In the pack, appendix 4 sets out the continuing basis comparatives. On that point, I will hand back to Elle Roseby for the strategy update and the outlook.

Speaker #2: In FY25, Adairs New Zealand contributed—sorry, in FY26, Adairs New Zealand contributed $12.8 million of revenue, and an underlying EBIT loss of $0.8 million. We recognized additional exit costs of $2.5 million.

Speaker #2: The exit is expected to be EBIT accretive from FY27, with no material cost to tail. Approximately 3% of sales will leave the Adairs base, so reported growth in FY27 will optically soften.

Speaker #2: In the PAC appendix, 4 sets out the continuing basis comparatives. And on that point, I'll hand back to Elle for the strategy update and the outlook.

Speaker #3: Thanks, Matt. I've turned to the brand and am starting with Adairs. For FY26, the product transformation was concentrated in categories Adairs is best known for.

Elle Roseby: Thanks, Matt. I turn to the brands and starting with Adairs. For FY26, the product transformation was concentrated in categories Adairs is best known for, our soft furnishing category. Soft furnishings delivered 4.6% sales growth for the full year, with gross margin dollars improving by 6% with an improvement of 100 basis points. For soft furnishings in the H1, sales increased 3.5% while gross margin dollars got 3.4%, down 10 basis points, primarily reflecting the increased clearance activity to discontinue inventory. The H2 is where we really began to see the impact of the product transformation and the new strategy executed. Sales growth accelerated to 5.6% increase, whilst gross margin dollars increased 8.5%, representing 190 basis points improvement. Importantly, this demonstrates the quality of sales performance as we move through to the transformation, with growth being delivered alongside meaningful margin expansion.

Speaker #3: Our soft furnishing category. Soft furnishings delivered 4.6% sales growth for the full year, with gross margin dollars improving by 6%, and an improvement of 100 basis points.

Speaker #3: For soft furnishings, in the first half, sales increased 3.5%, while gross margin dollars dropped 3.4%, down 10 basis points. This primarily reflects the increased clearance activity to discontinue inventory.

Speaker #3: The second half is where we really began to see the impact of the product transformation and the new strategy executed. Sales growth accelerated to a 5.6% increase, while gross margin dollars increased 8.5%, representing a 190 bps improvement.

Speaker #3: Importantly, this demonstrates the quality of sales performance as we moved through the transformation, with growth being delivered alongside meaningful margin expansion. These categories underpin the second half of gross margin recovery Matt discussed.

Elle Roseby: These categories underpin the H2 of growth margin recovery Matt discussed. Two other points. The Linen Lovers held at around 1 million paying members, contributing more than 80% of Adairs's sales, with the Qantas Frequent Flyer partnership now a meaningful driver of new member acquisition. The store's future format pilot at the Bondi Junction delivered customer conversion approximately 400 basis points above comparison stores. It is earmarked for rollout from FY27 into the Homemaker and large format network. Slide 15, Mocka. Turning to Mocka, the four categories launched during the year of outdoor, use, lighting, and focus delivered about AUD 3.2 million of sales, broadening Mocka from a nursery and kids specialist toward a whole-of-home offer. Impressively, the Australian website was up 26% and transactions up 18% on last year.

Speaker #3: Two other points. The Linen Lovers is held at around 1 million paying members, contributing more than 80% of Adairs' sales, with a Qantas Frequent Flyer partnership now a meaningful driver of new member acquisition.

Speaker #3: And the store of the future format piloted at Bondi Junction delivered customer conversion approximately 400 basis points above comparison stores, and it is earmarked for rollout from FY27 into the homemaker and large format network.

Speaker #3: Slide 15, MoCA, and turning to MoCA, the four categories launched during the year—outdoor, youth, lighting, and sofas—delivered about $3.2 million of sales, broadening MoCA from a nursery and kids specialist toward a whole-of-home offer.

Speaker #3: Impressively, the Australian website was up 26%, and transactions were up 18% on last year. Pleasingly, MoCA opened its first physical stores: Maruti Door in Queensland in June, and Tower Junction in Christchurch in July.

Elle Roseby: Pleasingly, Mocka opened its first physical stores, Maroochydore in Queensland in June, and Tower Junction in Christchurch in July. This is a deliberate test-and-learn. Further stores are contingent on the performance of these sites, with early positive signs. Slide 17, Focus on Furniture for 2-year turnaround. Focus on Furniture turnaround sequence across FY27 and FY28 applies the same framework approach as Adairs and Mocka. There are three strategic pillars that we are driving. Product and range renewal, which is about exclusive design-led collections with regular units, a clear category pricing architecture in place of ad hoc discounting, and a broader supply base. For brand new customer, we are prioritizing stock availability and a clear value, with a refreshed brand platform, disciplined trading calendar, and a rebuilt website and upgraded CRM. Retail execution.

Speaker #3: This is a deliberate test and learn. Further stores are contingent on the performance of these sites, with early positive signs. Slide 17: focus on furniture, the two-year turnaround.

Speaker #3: Focus on Furniture’s turnaround sequence across FY27 and FY28 applies the same framework approach as Adairs and MoCA. There are three strategic pillars that we are driving.

Speaker #3: Product and range renewal, which is about exclusive design-led collections with regular units; a clear category pricing architecture in place of ad hoc discounting; and a broader supply base.

Speaker #3: The brand and customer were prioritizing stock availability and clear value, with a refreshed brand platform, disciplined trading calendar, and a rebuilt website and an upgraded CRM.

Speaker #3: And retail execution—that's structured selling skills, a new in-store incentive scheme, rosters matched to demand, and a progressive refurbishment to the Frankston format, which outperformed the network. This is a refurbishment template going forward.

Elle Roseby: That is structured selling skills, a new in-store incentive scheme, rosters matched to demand, a progressive refurbishment to the Frankston format, which outperformed the network and this is the refurbishment template going forward. On timing, the H1 of FY27 will be difficult, as the weaker Q4 order book carries into the new financial year as stock recovers. Benefits are expected to emerge from the later part of FY27 and build into FY28, with EBIT recovery over the medium term. The store reset is funded with limited capital expenditure, and we remain committed to a national network of 40 to 50 stores over approximately 5 years from 27 stores that we have today. Sequence behind the product reset. Slides 21 to 22 is Vision 2030. Turning to strategy, Vision 2030, it gives us a longer-term framework for growth.

Speaker #3: In terms of timing, the first half of FY27 will be difficult, as the weaker fourth-quarter order book carries into the new financial year and stock recovers.

Speaker #3: Benefits are expected to emerge from the latter part of FY27 and build into FY28, with EBIT recovery over the medium term. The store reset is funded with limited capital expenditure, and we remain committed to a national network of 40 to 50 stores over approximately five years, from 27 stores that we have today.

Speaker #3: Sequence behind the product reset. Now, slide 21 to 22 is Vision 2030. So, turning to strategy—Vision 2030 gives us a longer-term framework for growth, for where we invest, how we allocate capital, and how we create value over time.

Elle Roseby: From where we invest, to how we allocate capital, and how we create value over time. Retail will always demand short-term discipline of the trading results, planning promotional cycles, disciplined inventory management, and delivering seasonal performance. While short-term discipline helps you manage the business, it does not necessarily help you build it. That is really what Vision 2030 is for. It is one strategic framework across three brands, recognizing that each brand serves a different customer and plays a different role in the portfolio. At its core, it is about building stronger businesses. The framework rests on three pillars. It is about product and brand, it is about being design-led, exclusive products, winning in the categories that we are famous for with pricing discipline over promotional intensity, supporting higher and more predictable margins.

Speaker #3: Retail will always demand short-term discipline of the trading results, planning promotional cycles, disciplined inventory management, and delivering seasonal performance. But while short-term discipline helps you manage the business, it doesn't necessarily help you build it, and that's really what Vision 2030 is for.

Speaker #3: It is one strategic framework across three brands, recognizing that each brand serves a different customer and plays a different role in the portfolio. But at its core, it's about building stronger businesses.

Speaker #3: And the framework rests on three pillars: it's about product and brand, it's about being design-led, exclusive products, winning in the categories that we're famous for, with pricing discipline over promotional intensity, supporting higher and more predictable margins.

Speaker #3: It's about customer obsession, about superior in-store experience, deeper insight and personalization, and a connected omnichannel offer—supporting higher lifetime value at lower acquisition costs.

Elle Roseby: It is about customer obsession, about superior in-store experience, deeper insight and personalization, and a connected omni-channel offer, supporting higher lifetime value at lower acquisition costs. Ways of doing business. It is about structural productivity. Exiting what does not earn its place and sharing group expertise. The sequence delivered at Adairs this year, range elevation, margin recovery, inventory productivity and cost discipline, is the same sequence now being applied at Focus on Furniture, supported by group experience. Slide 22 sets out the priorities by brand. For Adairs, elevate the brand's proposition to our customer's channel of choice and simplify the ways we go about our business, continuing to reduce complexity in our operating model and finding cost efficiencies. For Mocka, continue to grow the brand awareness and customer accessibility while building the capability enablement for growth.

Speaker #3: And ways of doing business. It's about structural productivity, exiting what does not earn its place, and sharing group expertise. The sequence delivered at Adairs this year—range elevation, margin recovery, inventory productivity, and cost discipline—is the same sequence now being applied at Focus, supported by group experience.

Speaker #3: Slide 22 sets out the priorities by brand. For Adairs, elevate the brand’s proposition to our customers’ channel of choice, and simplify the ways we go about our business, continuing to reduce complexity in our operating model, and finding cost efficiencies.

Speaker #3: For MoCA, we will continue to grow brand awareness and customer accessibility, whilst building the capability enablement for growth. And for Focus, we're resetting the brand and the operating model, and we will rejuvenate our stores and our products. We are encouraged by the progress, but there is a lot more to do.

Elle Roseby: For Focus on Furniture, we are resetting the brand and the operating model. We will rejuvenate our stores and our products. We are encouraged by the progress, but there is a lot more to do. Slide 24, FY27 trading update and outlook. In the first 8 weeks of FY27, group sales, excluding the exited Adairs New Zealand business, were down 4.5% on the prior year. Adairs' real-time sales were steady at 5.4. However, there are material timing differences in the period. We are cycling heavy clearance activity in the prior year, and a Linen Lovers event was moved to de-risk the ERP implementation. Given the event timing and clearance comparison, the first 8 weeks are not representative of the full year. Our internal analysis puts underlying Australian sales growth at approximately +2% over the 8 weeks, with gross margin ahead of the prior year.

Speaker #3: Slide 24, FY27 trading update and outlook. In the first eight weeks of FY27, group sales, excluding the exited Adairs New Zealand business, were down 4.5% on the prior year.

Speaker #3: Adairs' real-time sales were steady at plus 0.4%. However, there are material timing differences in the period. We are cycling heavy clearance activity in the prior year, and a Linen Lover event was moved to de-risk the ERP implementation.

Speaker #3: So, given the event timing and clearance comparison, the first eight weeks are not representative of the full year. Our internal analysis puts underlying Australian sales growth at approximately plus 2% over the eight weeks.

Speaker #3: With gross margin ahead of the prior year, MoCA real-time sales were up 15.3%, with Australian momentum continuing, and Maruti Door and Tower Junction trading in line with expectations.

Elle Roseby: Mocka real-time sales were up 15.3%, with Australian momentum continuing and Maroochydore and Tower Junction trading in line with expectations. Focus on Furniture written sales were down 27.6%. The inventory and availability issues from Q4 have carried into the new year, as flagged, and are expected to recover through Q2. The order book was AUD 11.8 million at week 8, up AUD 0.6 million since June, but below the AUD 13.4 million at the same point last year. On the outlook, FY27 is focused on earnings quality, moderate margin expansion, cost productivity and disciplined capital allocation. The new Adairs ERP system goes live in early FY27, with implementation risks being actively managed. Focus on Furniture expects a difficult H1, with turnaround benefits emerging in H2. On the store network, Adairs plans 7 to 10 new stores, 4 to 6 upsizes or refurbishments, and 2 to 5 closures.

Speaker #3: Focus written sales were down 27.6%. The inventory and availability issues from the fourth quarter have carried into the new year, as flagged, and are expected to recover through the second quarter.

Speaker #3: The order book was $11.8 million at week eight, up $0.6 million since June, but below the $13.4 million at the same point last year.

Speaker #3: On the outlook, FY27 is focused on earnings quality—moderate margin expansion, cost productivity, and discipline in capital allocation. The new Adairs ERP system goes live in early FY27, with implementation risk being actively managed.

Speaker #3: Focus expects a difficult first half, with turnaround benefits emerging in the second half. On the store network, Adairs planned 7 to 10 new stores, 4 to 6 upsizes or refurbishments, and 2 to 5 closures.

Speaker #3: MoCA has two stores trading and, in Q3, opens Mornington in Victoria, with further stores contingent on the pilot. Focus has no new stores planned.

Elle Roseby: Mocka has 2 stores trading, and in Q3 opens Mornington in Victoria, with further stores contingent on the pilot. Focus has no new stores planned. There are 2 relocations and 5 to 10 light refreshes, a group capital expenditure of AUD 25 to 30 million, approximately half of which is uncommitted. On currency, around 70% of FY27 US dollar requirements are hedged at 67.4 cents against an effective 66.4 cents in FY26. We are not providing FY27 earnings guidance. Before we take your questions, what we control is how we listen and respond to our customers and the experience we provide them. It is the quality of our ranges, the discipline of our pricing, the productivity of our stores and supply chain, and how we carefully allocate capital. That is exactly where our priority sits heading into FY27.

Speaker #3: There are two relocations, and five to ten light refreshers. Group capital expenditure is $25 to $30 million, approximately half of which is uncommitted.

Speaker #3: On currency, around 70% of FY27 US dollar requirements are hedged at 67.4 cents, compared to an effective 66.4 cents in FY26. And we are not providing FY27 earnings guidance.

Speaker #3: Before we take your questions, what we control is how we listen and respond to our customers, and the experience we provide them. It's the quality of our ranges, the discipline of our pricing, the productivity of our stores, and our supply chain.

Speaker #3: And how we carefully allocate capital. And that's exactly where our priority sits heading into FY27. Adairs and MoCA showed this year what that discipline can produce.

Elle Roseby: Adairs and Mocka show this year what that discipline can produce. We are applying that same rigor to Focus on Furniture with our eyes wide open about how long that will take. I am optimistic about what this business can become and clear that it will be earned and not assumed. With that, Matt and I would welcome your questions. Operator, please open the line.

Speaker #3: And we are applying that same rigor to focus on furniture, with our eyes wide open about how long that will take. I'm optimistic about what this business can become, and clear that it will be earned and not assumed.

Speaker #3: And with that, Matt and I would welcome your questions. Operator, please open the line.

Speaker #1: Thank you. If you wish to ask a question, please press star then one on your telephone and wait for your name to be announced.

Operator 2: Thank you. If you wish to ask a question, please press star then 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you are on a speakerphone, please pick up the handset to ask your question. The first question will come from Aaron Noorosie with Jarden. Please go ahead.

Operator: Thank you. If you wish to ask a question, please press star then 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you are on a speakerphone, please pick up the handset to ask your question. The first question will come from Aaron Noorosie with Jarden. Please go ahead.

Speaker #1: If you wish to cancel your request, please press star, then two. If you are on a speakerphone, please pick up the handset to ask your question.

Speaker #1: And the first question will come from Aaron Norozzi with Jardin. Please go ahead.

Speaker #2: Hi, guys. How's it going? First one, please. Just on the Adairs brand—Adairs' gross margin. So, it was just over 61% in the second half of FY26.

Aaron Noorosie: Hi, guys. Hope you are well. First one, please. Just on the brand Adairs gross margin. It was about just over 61% in H2 of fiscal 2026. Just looking back, I think in February this year, you sort of mentioned the aspiration was to get that gross margin back to fiscal 2024 levels of around 63%, and that was before FX benefits. Just wanted to see what the new or revised thinking is for FY27 in terms of the gross margin benefits and, obviously overlaying FX on that too, please.

Aryan Norozi: Hi, guys. Hope you are well. First one, please. Just on the brand Adairs gross margin. It was about just over 61% in H2 of fiscal 2026. Just looking back, I think in February this year, you sort of mentioned the aspiration was to get that gross margin back to fiscal 2024 levels of around 63%, and that was before FX benefits. Just wanted to see what the new or revised thinking is for FY27 in terms of the gross margin benefits and, obviously overlaying FX on that too, please.

Speaker #2: Just looking back, I think instead, this year you sort of mentioned the aspiration was to get that gross margin back to FY24 levels of around 63%, and that was before.

Speaker #2: FX benefits—just wanted to see what this new or revised thinking is for FY27 in terms of the gross margin benefits, and obviously overlaying FX on that too, please.

Speaker #4: Hi, Ari. How are you? Good, I hope. I think at the half we said, yes, aspirationally we'd want to get to 62. We'd quoted the FX rate on the outlook page.

Matt Edmonds: Hi, Ari. How are you? Good, I hope.

Aaron Noorosie: Good, thank you.

Aryan Norozi: Good, thank you.

Matt Edmonds: I think at the half we said yes, aspirationally, we would want to get to 62%. We have quoted the FX rate on the outlook page, so you can calculate what that would work to in bps. That would be about 60 to 80 bps, just calculating through the FX. As Elle said, we are focused on pricing discipline and promotional depth, so that is about as far as we would sit there on a gross margin position.

Speaker #4: So you can calculate what that would work through in bps. That would be about 60 to 80 bps, just calculating through the FX. As Al said, we are focused on pricing discipline and promotional depth, but that's about as far as we would sit there on a gross margin position.

Speaker #2: Sorry, did you say the FX is a 60 to 80 basis point benefit in FY27?

Aaron Noorosie: Sorry, did you say the FX is 60 to 80 basis point benefit in FY27?

Aryan Norozi: Sorry, did you say the FX is 60 to 80 basis point benefit in FY27?

Speaker #4: At the group, yeah. Based on that 1%, yeah.

Matt Edmonds: At the group, yeah. Based on that one term, yeah.

Speaker #2: Okay. But in terms of brand Adairs, isn't it more like a 150 basis point benefit to your gross margin, just given the hedge rates?

Aaron Noorosie: Okay. But in terms of brand Adairs, isn't it more like 150 basis point benefit to your gross margin, just given your head rates?

Aryan Norozi: Okay. But in terms of brand Adairs, isn't it more like 150 basis point benefit to your gross margin, just given your head rates?

Speaker #4: Broadly similar across the brands, Ari.

Matt Edmonds: They are broadly similar across the brands, Ari.

Speaker #2: Oh, okay. Okay. So the thinking is, into FY27, 62% is the sort of base margin you're aspiring to, and then on top of that you've got a 60 to 80 basis point benefit.

Aaron Noorosie: Oh, okay. The thinking leading to FY27, 62% is the sort of base margin you are aspiring to, and then on top of that, you have a 60 to 80 basis point benefit. So sort of 63 odd percent is where you are.

Aryan Norozi: Oh, okay. The thinking leading to FY27, 62% is the sort of base margin you are aspiring to, and then on top of that, you have a 60 to 80 basis point benefit. So sort of 63 odd percent is where you are.

Speaker #2: So, sort of 63% is where, really.

Speaker #4: I would sit there and say, that's your model, not our guidance, Ari, but yeah.

Matt Edmonds: I would sit there and say that is your model, not our guidance, Ari.

Aaron Noorosie: Yes.

Aryan Norozi: Yes.

Matt Edmonds: Yeah.

Speaker #2: Gotcha. Perfect. And then, second question, just on focus. I mean, in the first eight weeks, you're down 28%. Obviously, there are some issues. How should we think about the cadence of the declines into the second quarter?

Aaron Noorosie: Got you. Perfect. Second question, just on Focus. In the first 8 weeks, you are down 28%. Obviously, there are some inventory availability issues. How do we think about the cadence of the declines into Q2, just given the order bank? Is the way to think about it, well, Q2 is going to still be down 20% plus, and then from Q3 onward, you can get back into growth or stabilize the business? Please.

Aryan Norozi: Got you. Perfect. Second question, just on Focus. In the first 8 weeks, you are down 28%. Obviously, there are some inventory availability issues. How do we think about the cadence of the declines into Q2, just given the order bank? Is the way to think about it, well, Q2 is going to still be down 20% plus, and then from Q3 onward, you can get back into growth or stabilize the business? Please.

Speaker #2: Just given the order bank, is the way to think about it: Q2 is still going to be down 20% plus, and then from the third quarter on, would you expect to get back into growth or stabilize the business, please?

Speaker #4: I mean, what we said in the pack, Ari, is obviously Q1 broadly reflects the exit rate that we called out for Q4. Availability and newness does land at the beginning of Q2, which we would hope to see some improvement in that growth rate.

Matt Edmonds: What we have said in the pack, Ari, is obviously Q1 broadly reflects the exit rate that we called out for Q4. Availability and newness does land at the beginning of Q2, which we would hope to see some improvement in that growth rate. Q3 would then stabilize, and then hopefully by Q4 we would be hopefully demonstrating some growth, obviously comping the lower comps that we saw in Q4.

Speaker #4: Q3 would then stabilize, and then hopefully by Q4, we would be demonstrating some growth, obviously comping the lower comps that we saw in Q4.

Speaker #2: Right. And then just sort of last one, just on the cost efficiencies or opportunity for cost efficiencies in the business in FY27. Can you just quantify, if you can, just any efficiency benefits that you've sort of been implementing?

Aaron Noorosie: Right. Last one, just on the cost efficiencies or opportunity for cost efficiencies in the business in FY27. Can you just quantify, if you can, any efficiency benefits that you have been implementing? Obviously, you have the ERP. To what extent does that get offset by some of the more recent inflationary pressures like the fuel surcharges? That would be great, please.

Aryan Norozi: Right. Last one, just on the cost efficiencies or opportunity for cost efficiencies in the business in FY27. Can you just quantify, if you can, any efficiency benefits that you have been implementing? Obviously, you have the ERP. To what extent does that get offset by some of the more recent inflationary pressures like the fuel surcharges? That would be great, please.

Speaker #2: Obviously, you've got the ERT, and to what extent does that get offset by some of the more recent inflationary pressures, like the fuel surcharges? That would be great, please.

Speaker #4: I mean, I think what we've said through the pack and the voiceover today, Ari, is we are focused on cost and cost productivity. And we would hope to offset inflationary pressures in FY27.

Matt Edmonds: I think what we've said through the pack and the voiceover today is, we are focused on cost and cost productivity, and we would hope to offset inflationary pressures in FY27. I did call out some significant improvements in supply chain. That will annualize in FY27. But we are focused on ensuring that cost is managed in a good, disciplined way.

Speaker #4: I did call out some significant improvements in supply chain. Now, that will annualize in FY27. But we are focused on ensuring that cost is managed in a good, disciplined way.

Speaker #2: Right. Thanks, thanks, guys.

Aaron Noorosie: Right. Thanks. Cheers, guys.

Aryan Norozi: Right. Thanks. Cheers, guys.

Speaker #3: Again, if you have a question, please press star, then one. Our next question will come from Alan Franklin with Canaccord Genuity. Please go ahead.

Operator 2: Again, if you have a question, please press star then one. Our next question will come from Allan Franklin with Canaccord Genuity. Please go ahead.

Operator: Again, if you have a question, please press star then one. Our next question will come from Allan Franklin with Canaccord Genuity. Please go ahead.

Speaker #5: Morning, Al. Morning, Matt. Thank you for your time. Just on the capex—just to be very clear, $25 million is before the tech upgrade of $5 million, if I'm reading that correctly.

Allan Franklin: Morning, Al. Morning, Matt. Thank you for your time. Just on the CapEx, just to be very clear, 25 mil is before the tech upgrade of five, if I'm reading that correctly. Just help us frame whether FY27 is a bit of a catch-up year or the extent to which you're thinking about upsizes, refurbs, light refreshes, and so forth is more normal course of business moving forward.

Speaker #5: And just help us frame whether FY27 is a bit of a catch-up year, or to what extent you’re thinking about upsizes, refurbs, light refreshes, and so forth, as more of a normal course of business moving forward.

Speaker #4: So certainly, the $5 million is excluded from that $25 million, Alan. So that's a correct conclusion. We do call out that 50% of the capital is uncommitted, in the sense that we haven't signed lease commitments on that yet from a new store point of view.

Matt Edmonds: Certainly, the AUD 5 million is excluded from that AUD 25 million, Allan Franklin. That is a correct conclusion. We did call out that 50% of the capital is uncommitted in the sense that we have not signed lease commitments on that yet from a new store point of view. We will take those new stores on a case-by-case basis through 2027. We did call out some light refreshments in Focus, which are very capital light. Most of that is store layout and in-store design enhancements. We have a good pipeline of advanced stores and certainly, looking to increase the store portfolio to offset obviously the New Zealand exit that we did in FY26.

Speaker #4: And we will take those new stores on a case-by-case basis through '27. We did call out some light refreshments in focus, which are very capital light.

Speaker #4: Most of that is store layout and in-store design enhancements. But we are, I've got a good pipeline of Adairs stores and certainly looking to increase the store portfolio to offset, obviously, the New Zealand exit that we did in FY26.

Allan Franklin: Mm-hmm. Fine.

Speaker #6: Our Mocker is in a trial mode within three stores. So depending on the success of that going forward, we are already reviewing what that portfolio could look like.

Elle Roseby: The Mocka is in a trial mode

Allan Franklin: Yeah

Elle Roseby: within three stores. Depending on the success of that going forward, we are already reviewing what that portfolio could look like.

Speaker #5: Thank you. Maybe just layering in a query then on the ERP implementation. I appreciate some of the comments you made around being careful with the whole process.

Allan Franklin: Thank you. Maybe just layering in a query then on the ERP implementation. Appreciate some of the comments you made around being careful with the whole process. Just what are the key measurement points for you in this H1 that you need to step through? With the delayed Linen Lovers piece, how do we think about the framing of when you are doing your key periods for Adairs through H1, please?

Speaker #5: Just what are the key measurement points for you in this half that you need to step through? And what with the delayed linen lovers piece, how do we think about the framing of when you are doing your key periods for Adairs through first half, please?

Speaker #4: No, I think the important bit to note, Alan, is that we did cut over our online business onto the new ERP at the end of June, early July.

Matt Edmonds: Well, I think the important bit to note, Allan, is that we did cut over our online business onto the new ERP in end of June, early July. So that is over 30% of the Adairs business is now on the new platform, which is a good, strong result. The main implementation, the last phase of that implementation is in Q1.

Speaker #4: So that’s over 30% of the Adairs business now on the new platform, which is a good, strong result. The main implementation—the last phase of that implementation—is in Q1.

Speaker #4: So that's within the next few weeks, and that's important in terms of cutting over the rest of the stores—obviously the financial systems and the stock system.

Elle Roseby: Q1.

Matt Edmonds: So that is within the next few weeks. That is important in terms of cutting over the rest of the stores, obviously the financial systems and the stock systems. So we are at that high-risk phase of the main implementation, but the team are confident.

Speaker #4: So we're at that high-risk phase of the main implementation, but the team are confident.

Speaker #5: Thank you. And maybe just one on the market, stores, and the stores themselves. Appreciate this July opening, June opening. So we haven't seen CODB and the other, sort of, below-the-line items.

Allan Franklin: Thank you. Maybe just one on the Mocka stores and the stores themselves. Appreciate this July opening, June openings. We have not seen CODB, and the other sort of below the line items hit. When we are modeling these out, should we think that it is a store akin to a Focus store or an Adairs store or somewhere in between? Just any sort of color you can provide on rough metrics we should be thinking about, please.

Speaker #5: When we are modeling these out, should we think of it as a store akin to a Focus store, an Adairs store, or somewhere in between?

Speaker #5: Just any sort of color you can provide on rough metrics we should be thinking about, please.

Speaker #6: Yeah, the way we would look at it is the contribution is around the same as an Adairs store.

Elle Roseby: Yeah. The way we would look at it is the contribution around the same as an Adairs store.

Allan Franklin: Mm-hmm. Thank you.

Speaker #5: Thank you.

Speaker #3: As there are no further questions, I would like to turn the call back over to Ms. Roseby for any closing remarks. Please go ahead.

Operator 2: As there are no further questions, I would like to turn the call back over to Ms. Roseby for any closing remarks. Please go ahead.

Operator: As there are no further questions, I would like to turn the call back over to Ms. Roseby for any closing remarks. Please go ahead.

Speaker #6: I'd like to thank everybody on the call today and look forward to more calls later on today and next week. Thank you very much, everyone.

Elle Roseby: I would like to thank everybody on the call today and look forward to more calls later on today and next week. Thanks very much, everyone. I would like to also just thank the team that make this announcement possible and also for the board for supporting us throughout this year. Thank you.

Speaker #6: And I'd like to also just thank the team that made this announcement possible, and also thank the board for supporting us throughout this year.

Speaker #6: Thank you.

Operator 2: That does conclude our conference for today. Thank you for your participation. You may now disconnect.

Operator: That does conclude our conference for today. Thank you for your participation. You may now disconnect.

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