Endeavour flags improvement after Q3 sales dip
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The news: Drinks group Endeavour, which operates the Dan Murphy’s and BWS retail chains, is targeting positive sales growth in the current quarter after reporting a drop in March quarter sales.
The numbers: Sales for the 13 weeks to 6 April fell 1.7% to $2.84 billion, driven by a 3.1% decline in retail sales. This was partially offset by a 5.1% rise in hotel sales to $512 million.
Endeavour shares are up 1.2% to $4.21 in early trading on the ASX.
The context: Australia’s biggest alcoholic drinks retailer said it has seen an encouraging start to the fourth quarter, with Easter liquor sales in line with the prior corresponding period, and good growth for hotels on food, bars and gaming.
It is targeting “flat to modest” retail sales growth over the remainder of the June quarter amid subdued consumer spending activity as inflation remains somewhat elevated.
“While inflationary pressures are gradually easing, cost inflation will remain a headwind for both retail and hotels in the remainder of the second half,” Endeavour said.
The source: ASX
