ASX retail shares are underperforming on Tuesday as earnings season continues.
The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 0.3% while the S&P/ASX 200 Index (ASX: XJO) is up 0.5%.
Meantime, brokers have revealed two ASX retail shares to buy and two to sell.
Let's take a look.
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Nick Scali Ltd (ASX: NCK)
The Nick Scali share price is $19.14, up 3.9% on Tuesday and up 8.6% over the past 12 months.
The furniture retailer reported a 36% increase in profit in its 1H FY26 results last week.
Nick Scali revealed a 7.2% year-on-year increase in revenue to $269.3 million and an 18.8% uplift in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $96.6 million.
The statutory net profit after tax (NPAT) was $41 million, and there was a 14.1% improvement in gross margin to 59.2%.
Nick Scali announced a fully-franked interim dividend of 39 cents per share, up 30% on 1H FY25.
Bell Potter said first-half NPAT came in 11% above expectations.
The broker retained its buy rating on the ASX retail share but lowered its 12-month share price forecast by 11% to $25 "due to softer growth into the second half, earnings revisions and the rising interest rate environment".
Breville Group Ltd (ASX: BRG)
The Breville share price is $32.17, down 0.5% on Tuesday and down 13% over the past 12 months.
The white goods manufacturer released its 1H FY26 results last week.
The company revealed a 10.1% increase in total sales revenue to $1,098.7 million.
EBITDA grew by 2.9% to $182.8 million and NPAT lifted 0.7% to $98.2 million.
Breville announced a fully-franked interim dividend of 19 cents per share, up from 18 cents in 1H FY25.
Following the report, Morgans maintained a buy rating on this ASX retail share.
The broker commented:
1H26 was better-than-feared, with double-digit sales growth (+10%) largely offset by tariff costs (~130bp GM impact) to deliver a flat NPAT outcome (+1% on pcp).
Crucially, FY26 EBIT growth guidance provides much-needed earnings visibility, alleviating some concerns for an extended transition year and improving our confidence for a resumption of sustainable EPS growth from FY27+.
We continue to be impressed by BRG's strong operational execution, green shoots in Food Prep, and powerful medium-term tailwinds (geographic expansion, espresso tailwinds, NPD, Best Buy developments).
Collins Foods Ltd (ASX: CKF)
The Collins Foods share price is $10.14, up 1.2% today and up 24% over the past 12 months.
On The Bull this week, Michael Gable from Fairmont Equities revealed a sell rating on the KFC franchise owner.
Gable explained:
We expect cost pressures to hit margins. Cost of living pressures and rising interest rates in Australia may pressure sales.
The company delivered group revenue and statutory net profit after tax growth in the first half of 2026 when compared to the prior corresponding period.
However, market reaction to the result has been negative.
The shares have fallen from $11.60 on December 1, 2025 the day prior to the half year result, to trade at $10.425 on February 12, 2026.
Share price rallies are followed by selling pressure, a sign that investors are seeking out other opportunities.
Cettire Ltd (ASX: CTT)
ASX retail share Cettire is trading at 48 cents apiece, down 2% today and down 60% over the past 12 months.
Cettire will release its 1H FY26 results next Thursday.
Christopher Watt from Bell Potter Securities reckons the luxury goods online retailer is a sell.
Watt explained:
Fiscal year 2025 was challenging in response to a slowdown in demand, macroeconomic headwinds and a heightened competitive environment.
The company posted a statutory net loss after tax of $2.6 million.
The shares have fallen from $4.66 on February 12, 2024 to trade at 51 cents on February 12, 2026.
In our view, the lack of near term catalysts suggest elevated risk, particularly if macroeconomic headwinds dampen luxury demand.
