Why did Super Retail Group (ASX:SUL) increase its cost guidance for FY26?

Super Retail Group raised its expected group and unallocated costs by $6 million, bringing the total to $66 million for FY26. The company stated this increase is primarily due to timing, as it has pulled forward several strategic projects originally scheduled for FY27.

How did Super Retail Group (ASX:SUL) perform in terms of sales growth recently?

Between weeks 27 and 44 of FY26, the group saw total sales growth of 1.9%. However, underlying like-for-like (LFL) sales growth, which excludes the impact of new store openings, was nearly flat at 0.4%.

Which Super Retail Group brands are currently growing and which are struggling?

Supercheap Auto, Rebel, and Macpac all maintained positive growth trajectories during the period. In contrast, the outdoor-focused brand BCF significantly underperformed, posting a 3.3% decline in like-for-like sales and a 1.2% drop in total sales.

Why did BCF sales decline in the second half of FY26?

Management attributed the slump at BCF to "fuel shock" and supply anxieties linked to Middle East regional conflicts. High fuel prices directly impact BCF’s core customer base by making travel and outdoor activities more expensive, leading to a drop in participation, particularly in regional areas.

What is the current outlook for Super Retail Group’s profit margins?

Investors should note that group gross margins for the second half of FY26 are currently tracking "modestly below" the same period last year. This margin compression, combined with the $6 million increase in unallocated costs, suggests potential pressure on the upcoming net profit after tax.

Is Super Retail Group (ASX:SUL) considered a defensive or cyclical stock right now?

The stock is behaving more cyclically as high fuel prices and geopolitical tensions directly curb discretionary spending on outdoor and leisure goods. While Supercheap Auto and Rebel provide some resilience through essential auto maintenance and consistent sports demand, the heavy impact on BCF shows the group is highly sensitive to transport costs and consumer mobility.

What are the main bull and bear points for SUL shareholders after this update?

The bull case rests on the "pull forward" of FY27 projects, suggesting management is confident in long-term efficiency gains despite a temporary cost hike. The bear case focuses on the "fuel shock" hitting BCF and the contraction in gross margins.

Super Retail Group hikes FY26 costs as sales stall

Written by Mahathir BayenaPublished May. 6 2026Last Updated May. 6 2026

Super Retail Group (ASX:SUL) has adjusted its fiscal outlook, raising expected group and unallocated costs for FY26 by $6 million to a total of $66 million.

The revision stems primarily from an accelerated project timeline, with the retail giant pulling forward initiatives originally slated for FY27.

While the group managed a modest 1.9% increase in total sales growth between weeks 27 and 44, the underlying like-for-like sales growth remained nearly flat at 0.4%, reflecting a tightening consumer environment.

While Supercheap Auto, Rebel, and Macpac maintained growth trajectories, the outdoor-focused BCF brand struggled significantly.

BCF reported a 3.3% decline in like-for-like sales, a slump attributed to surging fuel prices and supply anxieties triggered by escalating conflict in the Middle East.

Management noted that these external pressures particularly dampened outdoor activity participation in regional hubs.

Furthermore, the company cited the "unfavourable" calendar separation of the Easter and Anzac Day holidays as a secondary drag on momentum.

Investors were also cautioned that group gross margins for the second half of FY26 are currently tracking "modestly below" the same period last year.