Adairs Ltd (ASX: ADH) shares are pushing higher on Tuesday after a notable shareholder update caught the market's eye.
At the time of writing, the Adairs share price is up 3.19% to $1.295.
While that gives shareholders some relief, the homewares and furniture retailer is still down almost 37% in 2026.
So, what has investors taking another look today?
Brett Blundy is back on the register
The latest move follows a notice lodged with the ASX on Monday evening.
That notice showed BBFIT Investments, Brett Blundy, and BBRC International have become substantial holders in Adairs.
The group now holds 9.1 million shares, giving it voting power of 5.10%. The notice shows the substantial holding was reached on 7 May 2026.
Blundy is not a random name in the retail sector. He has been linked to several major businesses over the years, including Lovisa Holdings Ltd (ASX: LOV), City Chic Collective Ltd (ASX: CCX), and the former Bras N Things business.
He also has history with Adairs.
In 2020, Blundy sold part of his Adairs holdings after the stock rallied strongly following a stellar result.
Now, the latest notice suggests he is rebuilding a position after a much tougher period for the embattled retailer.
A rough year for Adairs
In February, Adairs reported a weaker first-half result for FY26.
Sales rose by 5.9% to $329 million, but statutory profit declined by 33.8% to $12.8 million.
That profit fall was driven by pressure on margins, which fell 120 basis points.
Adairs had to work through excess inventory, while higher delivery costs, rent, and a softer Australian dollar also weighed on the result.
The dividend was also lower. Adairs declared a fully-franked interim dividend of 5.5 cents per share, down from 6.5 cents a year earlier.
Margins are still the key issue
Adairs is not a broken business, but it is operating in a difficult part of the market.
Households are still watching their spending, especially after 3 interest rate rises already this year. At the same time, retailers are discounting heavily to keep stock moving.
And that has put pressure on margins.
Costs are also still an issue, with rent, wages, freight, and currency movements all affecting retailers in different ways.
For Adairs, the market now wants evidence that margins are stabilising and profit can start moving higher again.
Foolish Takeaway
Blundy buying back in is enough to make Adairs more interesting after such a rough run.
Nonetheless, the company still has a lot of work to do.
Investors will want to see margins improve and profit start moving in the right direction again.
The post Billionaire Brett Blundy is buying again. Is this battered ASX retail share about to turn? appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs and Lovisa. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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