Super Retail Group reported record annual sales of $4.2 billion for the 2026 fiscal year, a 3.2% increase from the prior period, as the company’s transformation program weighed on profitability.
Normalized profit before tax declined 7% to $306.2 million, with the normalized profit margin compressing 80 basis points to 7.3%. Gross margin remained stable at 45.7%, up 10 basis points year-over-year. Like-for-like sales growth slowed to 1.8% across the portfolio, moderating from 2.5% in the first half to 1.1% in the second half.
The group’s shares surged 15.3% to $14.48 following the results announcement. Total online sales grew 5.3% to $552.1 million, representing 13.1% of revenue, while click-and-collect orders rose 10.3% and accounted for 48% of online sales. In-store transactions still dominated, comprising 93% of total sales.
Transformation spending increased by $19 million to $37 million, equivalent to 0.9% of sales, up 50 basis points. The company projected ongoing annual transformation costs of approximately $60 million for FY27, split evenly between corporate overheads and Project Ignite initiatives. Capital expenditure totaled $123.2 million, down from $165.4 million in FY25, with a forecast of around $160 million for FY27.
Operating cash flow reached $593.1 million, an increase of $15.8 million, with a cash conversion rate of 92%. Net debt stood at $14 million. The group maintained a return on capital of 16.7% and declared a fully franked final dividend of 33 cents per share, bringing the full-year payout to 65 cents per share, at the top end of its 55–65% payout range.
Brand performance varied: Supercheap Auto’s like-for-like sales grew 2.7%, while rebel maintained 3.8% growth. BCF’s sales declined 2.1%, though new large-format stores drove total growth of 5.5% in the first seven weeks of FY27. Macpac’s profit rose 32% to $13.6 million despite a modest 1.5% like-for-like sales increase.
Customer engagement metrics improved, with active club membership rising 4.8% to 13.1 million and club member retail sales penetration reaching 85.5%. Net promoter scores increased by 3 points to 74.
CEO Paul Bradshaw noted the results reflected deliberate long-term investments, stating the company remained focused on positioning for future growth despite near-term margin pressures.
