Adairs Ltd (ASX: ADH) shares are heading lower on Tuesday after the homewares retailer released an important company update.
The Adairs share price is currently down 4.28% to $1.23, extending what has already been a pretty rough year for shareholders.
Its shares have now fallen around 30% in 2026 and more than 50% over the past 12 months.
So, let's take a closer look at what was announced this morning.
Image source: Getty Images
Why are Adairs shares falling?
The big news today is the resignation of group CEO and managing director Elle Roseby.
Roseby has given notice after less than 2 years in the top job, although she won't be leaving immediately.
She is expected to remain with the company through all or most of her notice period, which runs until March 2027.
The board will now begin searching for a new CEO, with an appointment expected to be announced in due course.
There are also a few other changes happening across the leadership team.
Rachel Taylor will become executive general manager of the Adairs business from 5 October, taking responsibility for its day-to-day operations.
Meanwhile, CFO Matt Edmonds will take on additional responsibilities as group CFO and operations director.
Roseby only joined Adairs as CEO in January 2025, so her departure comes relatively early into her time running the company.
How is the business tracking?
Alongside the CEO news, Adairs also gave investors an update on how its three businesses are performing.
The core Adairs business continues to improve, with year-to-date sales tracking in line with the trend reported alongside its FY26 results.
Mocka is also performing well, with two standalone stores now open and a third expected to open in the third quarter of FY27.
But Focus on Furniture is still struggling.
Written sales were down 27.6% across the first 8 weeks of FY27 compared with the same period last year.
That improved slightly over the following 5 weeks, with sales down 22.7%.
It means Focus on Furniture written sales were down 19.5% across the first 13 weeks of FY27.
Management said the early impact of changes made since its FY26 results has been positive, although trading remains volatile from week to week.
The company is still expecting a difficult first half as it works through the turnaround.
Are Adairs shares looking cheap?
After such a big fall, Adairs shares are starting to look pretty cheap on a few measures.
At $1.23, the stock is now trading more than 50% below where it was this time last year.
The dividend is also worth a look.
Adairs paid 11.5 cents per share in dividends for FY26, which would give the stock a trailing yield of around 9.3% at today's price.
Of course, whether that level of dividend can continue will depend on how earnings hold up through FY27.
If management can get sales moving back in the right direction, today's share price could start to look exciting.
But I want to see more evidence that the turnaround is working first.
