The Super Retail Group Ltd (ASX: SUL) share price is up 16% after the company announced its FY26 result.
Super Retail is the retail ASX share that owns Supercheap Auto, Rebel, BCF and Macpac.
FY26 result
Here are some of the main highlights for the 12 months to 27 June 2026:
- Total sales up 3.2% to $4.2 billion
- Segment EBITDA (EBITDA explained) increased 2.1% to $774 million
- Segment EBIT fell 2.7% to $389 million
- Segment profit before tax (PBT) declined 7% to $306 million
- Normalised net profit declined 2.8% to $226 million
- Statutory net profit down 7.2% to $206 million
- Final dividend of $0.33 per share
- Full-year dividend of $0.65 per share
What happened in this result?
There was a varied performance across the brands.
Supercheap Auto sales rose 3.9%, Rebel sales increased 4.5%, BCF sales increased 0.2% and Macpac sales grew 3.5%. Each of those totals were boosted by new stores.
Pleasingly the company reported that online sales increased by 5% to $552 million, with online sales as a percentage of total sales increasing to 13.1%, up from 12.9% in the prior period.
The group gross profit margin increased by 10 basis points (0.10%) during the period to 45.7% in FY26. The gross margin increased at Rebel and BCF, but decreased modestly at Supercheap Auto and Macpac.
The retailer noted total normalised cost of doing business (CODB) increased by 5.6%, resulting in a 90 basis point (0.90%) increase as a percentage of sales, with operating costs rising 4% amid network expansion and inflation pressures on wages and occupancy costs. Some of the costs rose due to a new HR and payroll system, as well as a transition to the new distribution centre at Truganina.
Net profit suffered from higher financing costs and increased project investments
Outlook for the Super Retail share price
In the first seven weeks of FY27, Super Retail saw total sales growth of 3.5%.
Breaking that down to individual businesses, Supercheap Auto sales rose 5.3%, Rebel sales grew 2.8%, BCF sales increased 5.5% and Macpac sales declined 10.2%. Macpac sales were impacted by ongoing mild winter conditions over the peak trading period.
It also noted that wider economic conditions have caused uncertainty for the business and customers.
In FY27, the business plans to continue to invest in expanding and strengthening its network, as well as implementing initiatives relating to its Project Ignite transformation program.
I’d be happy with this update if I were a shareholder, considering the uncertain trading conditions. But, it’s not exactly producing huge growth, so I’d be inclined to invest at a weaker point for the Super Retail share price, rather than now when it’s rebounding.
I think there are more attractive ASX dividend shares to look at for income.
