Company Reports

Super Retail Group operates in Australia and New Zealand, selling automotive parts and accessories, sporting goods, and outdoor leisure equipment. The group is the market leader in all three segments in Australia, with about 20%-30% share in auto parts, camping equipment, and sporting goods retailing. However, we believe formidable competition will constrain operating margins as the firm competes on price to maintain market share.

Super Retail's fiscal 2026 sales increased by 3% year on year. But wages and rents rose by more. Investments in its supply chain and operating systems further cut into profits. Underlying pretax profits declined by 7%. Solid sales momentum is carrying into early fiscal 2027. Shares rallied 15%.

Super Retail outlined plans to expand its store network by 14% over the next five years. Some of this rollout includes regional stores for Rebel servicing populations less than 50,000. The group also announced a transformation program targeting AUD 75 million in annual cost savings by fiscal 2029.

Super Retail Group operates in Australia and New Zealand, selling automotive parts and accessories, sporting goods, and outdoor leisure equipment. The group is the market leader in all three segments in Australia, with about 20%-30% share in auto parts, camping equipment, and sporting goods retailing. However, we believe formidable competition will constrain operating margins as the firm competes on price to maintain market share.

Super Retail's sales momentum is grinding to a halt as shoppers tighten their belts. Rising inflation and cash rates are cutting into household budgets and weighing on consumer sentiment.

Super Retail's interim fiscal 2026 underlying pretax profit of AUD 173 million was in line with guidance. Discounting weakened gross margin and operating costs increased more than sales, reducing pretax profit margin by 1 percentage point to 8%. Underlying NPAT declined 7% to AUD 122 million.

Super Retail Group operates in Australia and New Zealand, selling automotive parts and accessories, sporting goods, and outdoor leisure equipment. The group is the market leader in all three segments in Australia, with about 20%-30% share in auto parts, camping equipment, and sporting goods retailing. However, we believe formidable competition will constrain operating margins as the firm competes on price to maintain market share.

Super Retail expects lower year-on-year profit in the first half of fiscal 2026, despite sales growth of 4%. At its guidance midpoint, underlying pretax profit of AUD 174 million is down 7%. Heavy discounting is dragging gross profit margins at sporting goods retailer Rebel. Shares fell 5%.

Super Retail Group operates in Australia and New Zealand, selling automotive parts and accessories, sporting goods, and outdoor leisure equipment. The group is the market leader in all three segments in Australia, with about 20%-30% market share in auto parts, camping equipment, and sporting goods retailing. However, we believe formidable competition will constrain operating margins as the firm competes on price to maintain market share.

Super Retail's sales momentum is holding up following the termination of its CEO in September. Group sales grew by 4.5% in the first 16 weeks of fiscal 2026, little changed from the first seven weeks. Newly appointed CEO Paul Bradshaw takes the helm in November ahead of key Christmas trading.

Super Retail's board terminated the employment of CEO Anthony Heraghty. The board made the decision after receiving new information on Heraghty's relationship with the company's former chief human resources officer. The board appointed CFO David Burns as the interim CEO.

Super Retail's sales increased by 5% to AUD 4.1 billion in fiscal 2025. A 3% increase in the store network was supplemented by like-for-like sales growth of 3%. However, operating costs increased more than sales, and intense competition drove down profit margins further. Adjusted NPAT declined 4%.

Super Retail Group operates in Australia and New Zealand, selling automotive parts and accessories, sporting goods, and outdoor leisure equipment. The group is the market leader in all three segments in Australia, with about 20%-30% market share in auto parts, camping equipment, and sporting goods retailing. However, we believe formidable competition will constrain operating margins as the firm competes on price to maintain market share.

Household incomes are growing in real terms after a period of rampant inflation. With inflation back within the Reserve Bank of Australia’s target range, the focus is shifting to keeping the job market in good shape. Monetary settings are slightly restrictive, providing room for more easing.

Tariffs are softening Australian consumer sentiment and investors are preferring defensive over cyclical retailers. Since sweeping US tariffs were announced April 2, our Morningstar Australia Consumer Defensive Index is up 3%, but the Morningstar Australia Consumer Cyclical Index is flat.

Global markets have been rattled by US President Donald Trump's "liberation day" tariffs. Trump has raised tariff rates to levels not seen in a century, which will likely set in motion a cascade of supply-demand side shocks, all acting to weigh on the rate of economic growth.

Super Retail is facing strong price competition and rising costs in its core Supercheap Auto business. At Rebel, the cost of the sporting goods chains' new loyalty program is dragging down profit margins. The market seemed to expect better, with shares down 12% on the day, Feb. 20.

Super Retail Group operates in Australia and New Zealand, selling automotive parts and accessories, sporting goods, and outdoor leisure equipment. The group is the market leader in all three segments in Australia, with about 20%-30% market share in auto parts, camping equipment, and sporting goods retailing. However, we believe formidable competition will constrain operating margins as the firm competes on price to maintain market share.

Retail spending is rebounding due to a larger workforce, higher wages, and meaningful fiscal stimulus. Discretionary categories are benefiting more than defensives from rising household incomes.

Trading momentum for nonessential goods is picking up. So far in fiscal 2025, sales growth is improving at Super Retail’s chains and Woolworths’ Big W discount department stores, as well as at electronics goods retailers JB Hi-Fi, Harvey Norman, and Kogan.