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Stock of the day
Super Retail Group
Shares in Super Retail Group fell almost 7% after a weaker-than-expected trading update highlighted margin pressure despite higher sales.
(AI video summary)
This video was created on 12 January 2026 for IG audiences by ausbiz.
ASX code: SUL
Super Retail trading update disappoints
Super Retail Group expects group revenue for the first half (H1) of financial year (FY) 2026 to be around 1% lower than the prior corresponding period. Chief executive officer (CEO) Paul Bradshaw pointed to elevated promotional activity across the retail sector, which has weighed on margins.
Group revenue for the 26 weeks to the end of December is expected to reach $2.2 billion, with total sales up 4.2% year-on-year (YoY). Growth was led by Macpac, while BCF underperformed. Normalised profit before tax is forecast at $173 million - $175 million, below analyst expectations.
Margins under pressure
Analysts said sales growth has come at the expense of profitability, as increased discounting across brands such as Rebel and Macpac compressed margins. This margin pressure was the key driver behind the sharp share price reaction.
Investment outlook
Analysts suggest near-term performance is likely to remain sensitive to margins and consumer spending, while longer-term interest may depend on an improvement in economic conditions.
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