Key Highlights

  • Statutory net profit after tax fell 7.2% to $206 million for the 52 weeks to 27 June 2026.
  • Segment EBITDA rose 2.1% to $774 million, while segment EBIT fell 2.7% to $389 million.
  • The final Dividend was 33 cents per share, taking the full-year dividend to 65 cents.
  • Gross Margin edged up 10 basis points to 45.7%, helped by Rebel and BCF.

How does a retailer report record sales and still see profit fall? Super Retail Group (ASX:SUL) answered that on 20 August 2026 with its FY26 result: sales grew 3.2% to $4.2 billion, yet normalised net profit after tax slipped 2.8% to $226 million because operating costs grew faster than gross profit. A trading update showed a mixed start to FY27.

What the FY26 numbers show

For the 52 weeks to 27 June 2026, the group reported segment EBITDA up 2.1% to $774 million, but segment EBIT down 2.7% to $389 million and segment profit before tax down 7% to $306 million. Statutory net profit after tax fell 7.2% to $206 million. The final dividend was 33 cents per share, taking the full-year dividend to 65 cents.

Gross margin edged up 10 basis points to 45.7%, with gains at Rebel and BCF offsetting small declines at Supercheap Auto and Macpac. The pressure came below the gross margin line. Normalised cost of doing Business rose 5.6%, which was about 90 basis points higher as a share of sales. Management pointed to network expansion, wage and occupancy inflation, a new human resources and Payroll system, and the move to a new distribution centre at Truganina. Online sales rose 5% to $552 million, or 13.1% of group sales.

The distinction between EBITDA and EBIT is worth noting. EBITDA grew while EBIT fell, which implies that Depreciation and amortisation, including from new stores and systems, grew faster than Earnings before those charges.

The four brands

Super Retail runs four brands, each with a different customer and seasonal pattern. Supercheap Auto sells automotive parts and accessories; Rebel sells sports apparel and equipment; BCF covers boating, camping and fishing; and Macpac sells outdoor clothing and gear.

Supercheap Auto sales rose 3.9% to about $1.6 billion, with Australian like-for-like sales up 2.8% and profit before tax up 3.3% to $203.3 million. Online sales grew 17% to $147 million. Fourth-quarter momentum slowed because of fuel-supply disruption.

Rebel sales rose 4.5% to about $1.4 billion, with like-for-like growth of 3.8%, higher transactions and average spend, and profit before tax up 4.3%. Gross margin improved 60 basis points as promotional discipline tightened and product mix improved. This follows the February 2026 half-year result, which Inside Retail reported as being hurt by Rebel discounting.

BCF was the softer area. Sales grew only 0.2%, like-for-like sales fell 2.1%, and profit before tax dropped 14.3% to $52.3 million after 12% growth in FY25. Weather hurt marine and fishing trade in South Australia and Victoria, and higher fuel prices and availability concerns dampened outdoor leisure over Easter.

Macpac sales rose 3.5% to $239.5 million, and profit before tax jumped 32% to $13.6 million, which management credited to disciplined pricing, margin management and cost control after earlier clearance activity. An unusually mild winter in New South Wales and Victoria suppressed Demand for insulation-type products.

The FY27 trading update

The update covered the first seven weeks of FY27. Group sales rose 3.5%, with Supercheap Auto up 5.3%, Rebel up 2.8%, BCF up 5.5% and Macpac down 10.2%. The company linked the Macpac decline to mild winter conditions during peak trading. Because the first seven weeks are a short window early in the year, the figures are indicative only and can change materially with weather, promotions and the calendar of sales events.

Strategy: store growth and Project Ignite

Management said it plans to keep investing in its store network and to deliver initiatives under its Project Ignite transformation program. Store growth supported sales in every Brand in FY26, but it also adds rent, wages and depreciation, which is part of why costs rose faster than sales. The new Truganina distribution centre and the new payroll and human resources system are one-time or transitional investments, so some of the FY26 cost increase may not recur at the same scale. Whether that happens will be visible in future cost-of-doing-business disclosures.

Sector position

Super Retail operates in specialty retail categories tied to household spending on cars, sport and leisure. It competes with department and discount stores, other specialist chains, and online marketplaces. Its advantages are scale, brand recognition, loyalty programs and a store network, but those advantages do not insulate it from consumer caution or weather. Management itself said that wider economic conditions have created uncertainty for the business and its customers.

The group's earnings are seasonal and weather-linked. BCF and Macpac in particular depend on summer and winter conditions, while Supercheap Auto is arguably more defensive because car maintenance is less discretionary. That gives the portfolio some balance, and FY26 showed it in practice: Supercheap Auto and Rebel growth offset softer BCF profit.

Risks and what to monitor

The main risks are cost Inflation outpacing sales growth, promotional intensity in sports retail, fuel prices and Supply disruption affecting automotive and leisure demand, weather, and consumer confidence. Inside Retail has also reported the pressure from promotions on Rebel earlier in FY26, so margin discipline is something to watch rather than assume.

Key items to track include the half-year result, expected in February 2027, further trading updates, whether operating cost growth moderates once the distribution centre and systems projects settle, BCF's recovery, Macpac's winter-season outcome, and the pace of Supercheap Auto online growth.

Overall, the FY26 result shows a diversified retailer still growing sales and gaining gross margin, but with earnings held back by cost growth. The next result will show how much of that cost base is temporary, and how brands such as Macpac respond.