** Shares of Adairs ADH.AX fall as much as 8.5% to A$2.16, set for their worst session since June 23, if losses hold

** The home furnishing retailer lowers its sales outlook for the first half of FY26

** Co now expects first-half sales to come in at A$319.5 million ($207.61 million) to A$331.5 million, down from A$324.5 million to A$336.5 million

** About 990,000 shares change hands, 1.9 times the 30-day avg

** Stock is down 19.6% YTD, including the session's moves

($1 = 1.5389 Australian dollars)

(Reporting by Anjali Singh in Bengaluru)

((anjali.singh2@thomsonreuters.com;))