Super Retail Group shares fall on slowing sales growth
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More news: Shares in Super Retail Group dropped in early trading after the company flagged slowing sales growth.
Super Retail shares were down 2.76% to $13.03 at 10:19am AEST.
What they said: E&P analyst Kade Madigan said he expected minor downgrades to FY25/FY26 consensus NPAT following the company's trading update.
“However, given the significant operating costs arising from the new payroll/HR systems we would anticipate downgrades to FY26 NPAT of between 6% to 8%,” Madigan said.
“We expect that 3Q25 will likely be SUL’s weakest quarter with consumers still coming off strong Black Friday and Christmas spending, no key promotional events during the period, increased travel due to the timing of public holidays and the Federal election. As such, we would expect sales momentum to improve over the remaining 8 weeks of the period.”
Super Retail Group posts positive H2 sales growth
The news: Super Retail Group reported positive sales growth for H2 2025, driven largely by strong performance from BCF.
The numbers: Group like-for-like sales growth of 3.1% in H2 was an increase on the 1.8% achieved in H1 FY25. While retail conditions remained generally subdued (excluding Easter), BCF’s momentum pulled the group’s performance up.
Group gross margins in H2 FY25 are tracking below the prior comparable period the company said, broadly consistent with the year-on-year decline in H1 FY25.
Rebel saw an acceleration in like-for-like growth in H2, despite absorbing a $5 million sales headwind courtesy of Cyclone Alfred. Footwear and Health & Wellbeing (equipment) were positive contributions.
The Group said it will incur $42 million in costs in FY25, compared to $36 million the year prior, and expects to incur a total of $29 million in FY26 as it replaces its payroll and HRIM system and continues its transition to a new distribution centre.
Shares in the Group were up over 1% by close of trading Wednesday, but remain over 12% down year-to-date.
The context: The sales figures were released ahead of Super Retail Group’s presentation at the Macquarie Group Australia Conference on Thursday, where CEO Anthony Heraghty is set to speak.
The Group made headlines last year when it told investors it expected former employees to bring claims of between $30 million and $50 million against it, as well as accusing Heraghty of being in a secret relationship with Jane Kelly, who was running Super Retail’s human resources division. Former chief legal officer Rebecca Farrell is also suing the company for unfair dismissal.
