The Endeavour Group Ltd (ASX: EDV) share price is in focus after the company reported H1 FY26 group sales rose 1% to $6.68 billion, with Dan Murphy's and BWS Q2 sales up 2.2% and Hotels Q2 sales climbing 4.4%.
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What did Endeavour Group report?
- Group sales grew 1.0% to $6.68 billion for the half year ended 4 January 2026.
- Dan Murphy's and BWS Q2 sales rose 2.2%; H1 sales for both brands up 0.7% to $5.4 billion.
- Hotels revenue increased 4.4% to $1.17 billion, with record results in December.
- Preliminary group profit before tax (pre significant items) expected between $400 million and $411 million (vs $437 million last year).
- A net significant item expense of $45 million pre-tax flagged for H1, mainly related to supply chain changes.
What else do investors need to know?
The retail business saw improved sales momentum throughout the half as customers responded well to price reductions and targeted promotions, especially at Dan Murphy's. However, this focus on sharper pricing led to an expected 85 basis point decline in retail gross profit margin compared to last year.
On the hotels side, strong holiday trading and refurbished venues boosted sales, with hotels delivering their best-ever monthly results in December. The group also incurred significant one-off costs for the planned closure of the Melbourne Liquor Distribution Centre and is transitioning to a new supply chain provider from 2027.
What did Endeavour Group management say?
Endeavour Group CEO Jayne Hrdlicka said:
The pricing and promotional decisions we have made in our Retail business have generated positive sales results, delivering on our aim to better align the customer propositions for each of our brands to re-ignite top line growth. In a competitive market landscape, we have focused on reinforcing customer confidence in the value we offer across all channels, particularly in Dan Murphyʼs unbeatable price and customer experience.
A key step to realising the potential of our Retail brands is improving sales momentum, and as the first half progressed we made a number of decisions to improve customer engagement and generate higher sales velocity, including investment in lower shelf prices. We are very pleased with the speed of customer reaction to our shelf price and targeted promotional activity, highlighting the strength in both retail brands.
What's next for Endeavour Group?
Management says the second half will focus on executing its refreshed strategy for both retail and hotels, targeting better in-store price execution and continued investment in customer experience. The transition to a new Victorian distribution centre aims to deliver supply chain benefits over time, despite the short-term costs.
Endeavour Group plans to provide further detail at its H1 FY26 results in March and at its next Investor Day. The company says it remains committed to offering strong value to customers while progressing efficiency and cost-reduction initiatives across its brands.
Endeavour Group share price snapshot
Over the past 12 months, Endeavour Group shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
