Endeavour Group (ASX:EDV) reported modest sales growth but softer earnings in a trading update for the first half of the 2026 financial year ended Jan. 4, reflecting increased price investment in a competitive retail environment.
Group sales rose 1.0% to $6.68 billion, driven by a 4.4% increase in hotels sales to $1.17 billion, while total retail sales edged up 0.3% to $5.51 billion, with momentum improving in the second quarter.
Dan Murphy's and BWS sales increased 0.7% to $5.4 billion, supported by four consecutive months of growth from September and a record December 2025 trading period, while specialty sales declined 16.2%.
Group EBIT before significant items is expected to be between $555 million and $566 million, down from $595 million in the prior corresponding period, with retail EBIT forecast at $323 million to $328 million as gross margin falls around 85 basis points year-on-year due to sharper pricing and elevated promotional activity.
Hotels EBIT is expected to rise to between $271 million and $275 million on the back of stronger gaming, refurbished venues and record December 2025 performance.
The group expects to recognise approximately $45 million in net significant items (pre-tax), largely related to one-off costs associated with the planned closure of the Melbourne Liquor Distribution Centre, with management noting that a new long-term distribution contract is expected to deliver material benefits over time.