Super Retail Group has issued a trading update for the first half of FY26 and the period to 27 December 2025 that gives investors an early brand performance and profitability insight. The trading update from SUL reflects the growth of the brands to be moderate, but at the same time, the margins and demand for the different categories have been affected by promotions and weather conditions.
What Does The Super Retail Group FY Outlook Show For Sales?
The Super Retail Group’s FY outlook is a rise in total sales of 4.2% and like-for-like sales growth of 2.5% across the group for weeks one to twenty-six. Supercheap Auto had a 3.5% like-for-like sales growth and a total sales growth of 5.1%, which the Company attributes to strong momentum in the second quarter.
Rebel reported 3.8% like-for-like growth and 4.8% total sales growth, notwithstanding the fact that they had to compare to a strong prior Christmas period. BCF had 1.6% negative like-for-like sales, but total sales increased by 0.3%. Macpac had the strongest growth of all, with a 7.8% increase in like-for-like sales and a 13.1% total sales increase.
Super Retail Group brands delivered mixed but steady growth across FY26 H1. [Red Cross]
Brand Performance Shows Diverging Market Conditions
Supercheap Auto’s margins were stable throughout the quarter, while they benefited from the stronger demand coming in during the second quarter. The firm recorded $813 million in revenue and normalised pre-tax profits in the range of $101 million and $102 million.
Rebel was $741 million in sales and made $53 million in pre-tax profits, but higher promotions and increased store activity took their toll on margins. The retail operations were made up of seven new stores, six closed stores, and three renovated or relocated stores which added to the cost pressure during the half-year.
BCF’s revenue was $520 million, and profit before tax was $39 million with fishing, and marine categories in Victoria and South Australia affected by environmental conditions. Macpac, on the other hand, had $122 million in revenue and $7 million in profit before tax, although clearance activity somewhat eroded their margins in the first half of the year.
How Strong Is The Group Financial Position?
The financial outlook for Super Retail Group is still bolstered by strong liquidity and low debt levels. The Company reported that it had no outstanding bank loans and had a positive cash position at the end of the first half.
The group revenue for the first half is projected to be $2.2 billion, while the profit before tax adjustment is estimated between $172 million and $175 million. These numbers are still preliminary and will be confirmed after the audit process, which will culminate in the final release on 26 February 2026.
The costs for the group and unallocated costs have been estimated,d to be between $26 million and $28 million, which accounts for the duplication of costs related to the new distribution centre in Victoria and the new human resources and payroll system being implemented. Both projects are expected to be operational by the end of the fiscal year 2026, second half.
Cash strength supports investment and operational upgrades. [Value Research]
Operational Investment Shapes Medium-Term Strategy
The management pointed out that the higher promotional activity made the gross margins lower, especially in rebel brand, but on the other hand, investments in operations are still needed to handle the growth in the network and the resilience of the supply chain.
The new distribution centre in Victoria will increase logistical capacity, while the human resources system overhaul aims to make workforce management more efficient. These programs entail short-term expense but are expected to save operating costs in the long run.
The Company is still keeping a close eye on the market and adjusting its pricing strategy in order to maintain a good balance between margins and prices, as consumers are staying very selective with their spending in the discretionary retail categories that are hardest hit.
Can Promotions Continue Without Harming Margins?
Promotional activity is still a main tactic to keep traffic up to the same level during the retail cycles of the competitors, but on the other hand, constant discounting can really hurt the profitability.
Management stated that during the whole period, the promotions were very strong, especially in the clothing and sports categories. The promotions helped sales growth, but margin recovery might rest on less discounting pressure in the next quarters and better cost absorption through larger sales volumes.
Weather effects, particularly for outdoor leisure categories, also remain an external risk affecting demand patterns, which might eventually become seasonal.
Promotions lift traffic, but constant discounts hurt profits. [Phoenix Strategy Group]
What Should Investors Watch Ahead Of February Results?
The interim results presentation on 26 February 2026, will disclose the audited figures and the updated outlook commentary. Investors will probably pay attention to the margin recovery trends, inventory levels, and the progress of the key infrastructure projects.
The management’s confidence is still backed up by the record sales of the first half, though the earnings growth will depend on controlling costs and stabilising promotional activities in the second half. Therefore, the Super Retail Group FY outlook indicates a cautious but still optimistic view, which is based on diversified brand exposure and a strong balance sheet position.
Also Read: WGB Shares in Focus: Key Takeaways From ASX WGB December 2025 Investment Update
FAQs
Q1: What is the headline outcome of the SUL trading update?
A1: Group total sales grew 4.2% with normalised profit before tax expected between $172 million and $175 million.
Q2: Which brand performed best in FY26 H1?
A2: Macpac recorded the strongest growth, with total sales rising 13.1% and like-for-like sales up 7.8%.
Q3: Why did margins decline at Rebel?
A3: Higher promotional activity and store network changes increased cosstabilisingced realised gross margins.
Q4: When will the final audited results be released?
A4: Super Retail Group will release final first-half results on 26 February 2026.
