Super Retail Group (SUL) H1 2026 earnings summary

Executive summary

• Sales increased 4.2% year-over-year to $2.2 billion, driven by 2.5% like-for-like growth and network expansion in a competitive retail environment.

• Statutory NPAT declined 19.8% to $104.1 million, while normalized NPAT fell 6.8% to $121.9 million, impacted by higher costs and promotional activity.

• Supercheap Auto and Macpac delivered strong profit growth, while rebel and BCF faced profit declines due to increased promotional activity, inventory, and weather disruptions.

• Active club membership grew by 1 million to 13 million, now representing 85% of sales and supporting strong customer engagement.

• Continued investment in omni-channel capabilities, store network expansion, and a new national distribution centre in Victoria.

Financial highlights

• Gross margin declined by 20 bps to 45.4%, mainly due to increased promotional activity.

• Normalized PBT was $173 million, down 6.9%; normalized EPS at 54.0 cents, down 6.7% year-over-year.

• Operating cash flow increased 7% to $415.7 million; cash conversion at 124.7%.

• Interim dividend of 32 cents per share, fully franked, in line with prior year.

• Net cash balance of $107.8 million and no drawn bank debt at period end.

Outlook and guidance

• Positive like-for-like sales momentum in the first eight weeks of H2, with group like-for-like sales growth of 5.0%.

• Capex for FY26 targeted at $155 million, focused on store development, distribution centre, and digital investments.

• 12 new stores planned for 2H26 across all brands.

• Currency hedging expected to provide a tailwind in H2 and into FY27.

• Group and Unallocated expenses in FY26 expected to total $60 million.