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Super Retail Group grows sales but margins tighten amid investment and cost pressures

Story Highlights
  • Super Retail Group grew first-half sales 4.2% to $2.2 billion, with like-for-like and online sales rising and Supercheap Auto and Macpac leading performance.
  • Earnings declined as gross margin and NPAT weakened under higher wages, occupancy and project costs, even as the group strengthened its balance sheet and store network.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Super Retail Group grows sales but margins tighten amid investment and cost pressures

Meet Samuel – Your Personal Investing Prophet

Super Retail Group Limited ( (AU:SUL) ) has provided an update.

Super Retail Group reported first-half FY26 sales of $2.2 billion, up 4.2%, with like-for-like sales rising 2.5% and online revenue growing 8.8% to $311.7 million. Supercheap Auto and Macpac led growth, while rebel delivered moderate gains and BCF was flat against a record prior year, contributing to an 8% lift in active club members to 13 million.

Despite top-line growth, profitability softened as gross margin slipped 20 basis points to 45.4% and normalised NPAT fell 6.8% to $121.9 million, with statutory NPAT down 19.8%. Higher wages, occupancy costs, and investment in a new Victorian distribution centre and HR and payroll systems weighed on margins, though the group maintained a $108 million cash balance, no drawn bank debt, and declared a fully franked interim dividend of 32 cents per share.

Operationally, Super Retail Group opened 16 stores and closed 10, kept inventory quality high with aged stock below target, and saw 93% of sales still completed in store despite digital growth. Management highlighted improved safety metrics and stronger customer outcomes, underscoring continued investment in brand loyalty and infrastructure as the group navigates a competitive retail environment and cost pressures.

The most recent analyst rating on (AU:SUL) stock is a Hold with a A$15.50 price target. To see the full list of analyst forecasts on Super Retail Group Limited stock, see the AU:SUL Stock Forecast page.

More about Super Retail Group Limited

Super Retail Group Limited is an Australian specialty retail group operating brands including Supercheap Auto, rebel, BCF and Macpac. The company focuses on automotive parts and accessories, sporting goods, outdoor leisure, and outdoor apparel, with a large national store network complemented by a growing online and loyalty club presence.

Average Trading Volume: 382,366

Technical Sentiment Signal: Hold

Current Market Cap: A$3.15B

See more insights into SUL stock on TipRanks’ Stock Analysis page.

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