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Endeavour Group Sacrifices Margins to Rekindle Retail Growth as Hotels Hit Record December

Story Highlights
  • Endeavour Group lifted sales modestly in H1 F26, with hotels strong and Dan Murphy’s and BWS returning to growth and delivering record December trading.
  • Retail price and promotion investments squeezed margins, pushing down EBIT and profit before tax, as management prioritises market share and long-term growth initiatives.
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Endeavour Group Sacrifices Margins to Rekindle Retail Growth as Hotels Hit Record December

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An update from Endeavour Group Ltd ( (AU:EDV) ) is now available.

Endeavour Group reported modest group sales growth of 1.0% to $6.68 billion for the 27 weeks to 4 January 2026, with total retail sales up 0.3% to $5.5 billion and hotel sales rising 4.4% to $1.2 billion. The core Dan Murphy’s and BWS chains returned to firmer momentum with four consecutive months of growth and a record December, helped by stepped-up investment in lower shelf prices and aggressive promotions, but this strategy compressed retail gross profit margins by about 85 basis points and is expected to pull Retail EBIT down to $323–328 million. At group level, EBIT before significant items is projected at $555–566 million and profit before tax at $400–411 million, below the prior period, while the company also flagged $45 million in pre-tax significant items for the half. Management framed the margin trade-off as a deliberate move to reinforce price leadership and re-ignite top-line growth in a competitive market, signalling ongoing initiatives in pricing sophistication, customer experience and cost reduction that will take time to flow through, even as the hotels division continues to deliver robust like-for-like growth and record trading over the peak holiday period.

The most recent analyst rating on (AU:EDV) stock is a Hold with a A$3.60 price target. To see the full list of analyst forecasts on Endeavour Group Ltd stock, see the AU:EDV Stock Forecast page.

More about Endeavour Group Ltd

Endeavour Group Ltd, listed on the ASX, operates a major drinks retail and hospitality business in Australia, with flagship liquor chains Dan Murphy’s and BWS alongside a national portfolio of hotels offering gaming, food, bars and accommodation. The group focuses on value-led beverage retailing and venue-based entertainment, competing in a highly promotional market while leveraging its scale, brand strength and omnichannel retail capabilities.

Average Trading Volume: 2,913,135

Technical Sentiment Signal: Sell

Current Market Cap: A$6.77B

Learn more about EDV stock on TipRanks’ Stock Analysis page.

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