This afternoon, Super Retail Group Ltd (ASX: SUL) reported group like-for-like sales growth of 0.4% for the second half so far, with Supercheap Auto and Macpac delivering positive momentum despite tougher trading conditions.
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What did Super Retail Group report?
- Like-for-like sales grew 0.4% for the first 44 weeks of H2 FY26
- Total group sales rose 3.3% for weeks 1 to 44 FY26
- Supercheap Auto total sales up 4.3%; Macpac sales up 8.9% year to date
- rebel's total sales up 4.0%; BCF sales flat at -0.3%
- Group gross margin is modestly below the same period last year
- Group & Unallocated costs for FY26 expected at $66 million, up from previous $60 million estimate
What else do investors need to know?
Trading conditions across all brands were affected by the Middle East conflict and economic headwinds like higher fuel prices and rising interest rates. These factors led to subdued consumer sentiment, especially during the important Easter retail period.
Supercheap Auto and rebel both increased their market share. Interest in auto maintenance, DIY parts, men's sportswear, recovery gear, and football supported sales. However, discretionary spending declined, impacting categories like power tools, performance footwear, and high-value sporting equipment.
Super Retail invested around $30 million in extra working capital to secure inventory ahead of price increases, especially for Supercheap Auto, and to ensure supply for regional areas.
What's next for Super Retail Group?
The company is pressing ahead with the opening of its new Victorian distribution centre and rolling out a new HR Core & Payroll system. Both initiatives are tracking to plan this half, though the early start of these projects contributed to the higher cost outlook for FY26.
Macpac is preparing for its peak winter season, with a focus on managing inventory carefully. Across the group, investments in supply chain and systems aim to position Super Retail Group to navigate current economic challenges and support future growth.
Super Retail Group share price snapshot
Over the past 12 months, Super Retail shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
