)
Super Retail Group (ASX: SUL) has revealed a sharp slowdown in like-for-like sales growth during the second half of FY26, with the owner of Supercheap Auto, Rebel, BCF and Macpac attributing the deceleration to higher fuel prices, rising interest rates and weakening consumer sentiment.
In a trading update covering the first 44 weeks of FY26, the company reveals that group like-for-like sales growth slipped to just 0.4 per cent in the second half to date (weeks 27 to 44), a marked step down from the 2.5 per cent recorded across the first half and the 3.5 per cent pace reported through the opening eight weeks of H2 at the February half-year results.
The company points to the onset of the Middle East conflict as a catalyst, saying it has driven elevated fuel prices and fuel supply concerns that have weighed heavily on discretionary spending, with the impact most pronounced over the Easter trading period.
Inflationary pressures have been further exacerbated by rising interest rates, says the company.
BCF bore the brunt of the downturn, posting like-for-like sales declines of 3.3 per cent in the second half to date. The impact was more noticeable in regional areas.
The outdoor and fishing goods retailer had already struggled in the first half, when drought conditions across Victoria and South Australia dampened demand for boating and camping products.
"After a strong start to the year, trading conditions in the Auto category moderated through March and April," says Super Retail Group.
"The impact was most evident in discretionary categories such as power tools, partially offset by increased demand in fuel related and DIY categories including maintenance, braking and trailer components."
The company says Supercheap Auto increased its share of the Auto market over the March quarter, while Rebel also gained market share and delivered a "resilient performance" despite operating in a sports category that recorded declining sales through March and April.
"Ongoing participation in sport and exercise continued to underpin demand, with men’s wear, recovery gear and football performing well, while Licensed (fan gear) remained solid," says the company.
"Fitness tech contributed positively, supported by recent promotional activity. In contrast, demand for higher-value sporting equipment was subdued, and performance footwear growth moderated amid increased competitive intensity in the category."
Group gross margin for the second half is tracking "modestly below" the prior comparable period, the company says.
Super Retail also lifted its FY26 group and unallocated cost guidance to $66 million, up from the $60 million flagged at the half-year result, citing the early commencement of projects that had originally been earmarked for FY27.
The group disclosed $30 million in strategic working capital investment to secure inventory ahead of anticipated price increases, a move designed to protect margins in an environment of rising input costs.
The update follows a first half in which the group posted total sales of $2.2 billion, up 4.2 per cent on the prior corresponding period, while normalised profit before tax came in at $173 million, down from $186 million in the prior year.
Normalised net profit after tax fell 6.8 per cent to $121.9 million, and the board declared an interim dividend of 32c per share.
)
