AdairsASX:ADH +2.22%82 Gross Margin % is 46.79% as of Dec. 2025, which is 18% below its 10-year median of 57.17. GuruFocus rates ASX:ADH with a GF Score™ of 82/100 and a GF Value™ of A$2.14 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Adairs ranks better than 68.04% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Adairs's Gross Profit for the
six
months ended in Dec. 2025 was A$153.9 Mil. Adairs's Revenue for the
six
months ended in Dec. 2025 was A$329.0 Mil. Therefore, Adairs's Gross Margin % for the quarter that ended in Dec. 2025 was 46.79%.
Warning Sign:
Adairs Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.1%.
The historical rank and industry rank for Adairs's Gross Margin % or its related term are showing as below:
ASX:ADH'
s Gross Margin % Range Over the Past 10 Years
Min: 45.95 Med: 57.17 Max: 60.95
Current: 46.28
During the past 11 years, the highestGross Margin % of Adairs was 60.95%. The lowest was 45.95%. And the median was 57.17%.
ASX:ADH's Gross Margin % is ranked better than 68.04% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs ASX:ADH: 46.28
Adairs had a gross margin of 46.79% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Adairs was -5.10% per year.
Adairs (ASX:ADH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Adairs had a gross margin of 46.79% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Adairs Gross Margin % Related Terms
Adairs Gross Margin % Historical Data
* Premium members only.
The historical data trend for Adairs's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:ADH vs CASY, WSM, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, Adairs's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Adairs Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Adairs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Adairs's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Adairs (ASX:ADH) has a Gross Margin % of 46.79% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Adairs and its competitors. This is 18% below median its historical median of 57.17. Over the past decade, Adairs' Gross Margin % has ranged from 45.95 to 60.95. According to the industry distribution chart, Adairs ranks #357 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 32%.
Is Adairs' Gross Margin % too high?
Adairs' current Gross Margin % of 46.79% is 18% below median its 10-year median of 57.17. Over the past 10 years, this metric has ranged from a low of 45.95 to a high of 60.95. The Retail - Cyclical industry median Gross Margin % is 36.23. Adairs' value of 46.79% is 29.1% above this industry median. Based on the distribution chart, Adairs ranks #357 out of 1117 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Adairs has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Adairs' Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Adairs ranks #357 out of 1117 companies for Gross Margin %. This puts Adairs in the upper half of its industry. The industry median Gross Margin % is 36.23. Adairs' value of 46.79% is 29.1% above this benchmark. Historically, Adairs' own Gross Margin % has ranged from 45.95 to 60.95 over the past decade. While the company's 10-year median is 57.17 vs. the industry median of 36.23, Adairs has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Adairs's current Gross Margin % of 46.79% is 29.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Adairs and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adairs's current Gross Margin % is 46.79%, which is 18% below median its own 10-year median of 57.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adairs stock overvalued right now?
Based on GuruFocus' analysis, Adairs (ASX:ADH) is currently considered Possible Value Trap. The stock's GF Value™ is A$2.14, compared to a current price of A$1.38 — trading 35.5% below its estimated fair value. The current Gross Margin % is 46.79%, which is 18% below median its 10-year median of 57.17 and 29.1% above the Retail - Cyclical industry median of 36.23. Adairs' overall GF Score™ is 82/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Adairs (ASX:ADH), the current Gross Margin % is 46.79% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Adairs (ASX:ADH) Overvalued in 2026?
Based on GuruFocus' analysis, Adairs stock appears to be undervalued.
The current stock price of A$1.38 is trading 35.5% below its estimated GF Value™ of A$2.14.
GuruFocus considers Adairs to be Possible Value Trap.
Key valuation signals for ASX:ADH:
Gross Margin %: 46.79% (18% below median its 10-year median of 57.17)
GF Value™: A$2.14 vs. price of A$1.38 (35.5% below fair value)
Industry Position: 29.1% above the Retail - Cyclical median (#357 of 1117)
No single metric tells the full story. See the ASX:ADH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adairs Ltd is engaged in the retailing of homewares and home furnishings in Australia and New Zealand. The company's product range includes categories, such as quilt covers and coverlets, sheets, cotton flannelette, pillowcases, quilts, pillows, mattress protectors, pillow protectors, blankets, nursery products, valances, bed wraps, bedspreads, and slippers, kids beach products and towels, cushions, throws, gifts and toys, wall arts, rugs, laundry, and home care products, chairs, bedheads, storage and shelves, ottomans and bench seats, and tables, as well as pots and plants, baskets, throws, home decor, and fragrance products, mirrors, lighting products, and tableware and pets products. Its operating segments are Adairs, Focus on Furniture, and Mocka.
82GF Score
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