Super Retail Group Ltd (ASX: SUL) shares are in the spotlight on Monday.
In morning trade, the ASX 200 stock is down 11% to $14.03.
Why is this ASX 200 stock crashing?
Investors have been selling the retail conglomerate's shares this morning following the release of a trading update.
According to the release, like for like sales were up 2.5% on the prior corresponding period during the first half of FY 2026. This led to Super Retail's total sales increasing 4.2% year on year to a record of $2.2 billion.
Management advised that this comprises Supercheap Auto revenue of $813 million, Rebel revenue of $741 million, BCF revenue of $520 million, and Macpac revenue of $122 million.
How are its businesses performing?
Commenting on the ASX 200 stock's performance, group managing director and CEO, Paul Bradshaw, said:
Supercheap Auto delivered a solid first half result, with revenue growth accelerating in the second quarter and gross margin broadly in line with the prior comparison period.
The Rebel business also performed positively despite cycling strong sales in the prior corresponding period. Though, its sales growth came at the expense of margins. Bradshaw adds:
Rebel delivered credible like-for-like sales growth in the half, cycling a strong Christmas trading period from the prior year. Realised gross margins were lower due to higher levels of promotional activity. Store network activity was high in the period, with associated costs further weighing on profit before tax. A total of 7 store openings, 6 closures and 3 refurbishments/relocations were actioned in the period.
Things weren't so positive for the BCF business, which underperformed expectations. Its managing director explained:
BCF did not match the strong level of sales from the prior year. Fishing and Marine categories were heavily impacted in the period by macro weather/environmental factors in Victoria and South Australia. BCF gross margins were broadly in line with the prior year.
Finally, the Macpac delivered strong sales growth but felt the impact of clearance activity on its margins. Bradshaw said:
Macpac continued to realise strong like-for-like sales momentum. Gross margins were impacted by clearance activity earlier in the half.
Profit guidance
In light of the above, the ASX 200 stock is guiding to a normalised profit before tax of $172 million to $175 million for the first half, subject to its audit review.
This is down from $186 million in the prior corresponding period and $206 million a year before that.
Paul Bradshaw concludes:
For the purpose of this trading update, normalised profit before tax does not include items considered unusual by their nature or size and or not being in the ordinary course of business. The Group had no drawn bank debt, and maintained a positive cash balance at the end of the first half.
I would like to thank all of our team members whose commitment and tireless efforts continue to deliver great experiences for our customers and a solid outcome for our shareholders. I look forward to providing further details on our first half performance at our interim results presentation on 26 February 2026.
