How Did Super Retail Group Achieve Record 13.1% Sales Growth Amid Margin Pressures?
Super Retail Group has reported a record 13.1% sales growth in the first half of FY26, with normalised profit before tax expected between $172 million and $175 million despite margin challenges and weather impacts.
- Record group sales growth of 13.1% in H1 FY26
- Normalised profit before tax guidance of $172-$175 million
- Strong performances from Supercheap Auto and Macpac
- rebel faces margin pressure due to elevated promotions
- BCF sales impacted by adverse weather in Victoria and South Australia
Strong Sales Growth Drives Record Revenue
Super Retail Group has delivered an impressive trading update for the first half of FY26, closing on 27 December 2025, with group revenue expected to reach $2.2 billion. This marks a record sales growth of 13.1% compared to the prior corresponding period, underscoring the group's resilience and market appeal across its portfolio of specialty retail brands.
Key contributors to this growth include Supercheap Auto and Macpac, which posted solid like-for-like sales increases of 3.5% and 7.8% respectively. These brands benefited from strong customer demand and operational momentum, with Supercheap Auto seeing an acceleration in revenue growth during the second quarter.
Margin Pressures and Weather Challenges
Despite the robust top-line performance, the group faced margin headwinds, particularly within rebel. The sportswear retailer achieved credible like-for-like sales growth of 3.8%, but elevated promotional activity weighed on realised gross margins. Additionally, store network changes, including seven openings, six closures, and three refurbishments, added to costs, impacting profit before tax.
BCF, the outdoor and fishing specialist, experienced a slight decline in total sales by 1.6%, largely due to adverse weather conditions in Victoria and South Australia affecting fishing and marine categories. While gross margins remained broadly stable, the sales softness highlights the vulnerability of certain segments to environmental factors.
Operational Investments and Financial Position
The group incurred duplication costs related to the rollout of a new distribution centre in Victoria and the implementation of a new Human Resources Core and Payroll platform. Both projects are progressing on schedule for a second-half go-live, reflecting Super Retail Group’s commitment to operational efficiency and scalability.
Financially, the group remains in a strong position with no drawn bank debt and a positive cash balance at the end of the first half. Normalised profit before tax is preliminarily expected between $172 million and $175 million, excluding unusual or non-recurring items, pending audit finalisation.
Looking Ahead
Group Managing Director Paul Bradshaw expressed satisfaction with the results, highlighting the team’s efforts in delivering solid outcomes despite a challenging retail environment. Investors will be keenly awaiting the final audited results due on 26 February 2026, which will provide greater clarity on margin trends and the impact of ongoing investments.
Bottom Line?
Super Retail Group’s strong sales momentum faces margin and environmental headwinds, setting the stage for a pivotal second half.
Questions in the middle?
- How will elevated promotional activity at rebel affect full-year profitability?
- What strategies will BCF employ to mitigate weather-related sales volatility?
- Will operational investments in distribution and HR systems translate into improved margins?
