Australia's Super Retail sinks to near three-year low as MidEast conflict dents sales

SUPER RETAIL

07/05/2026 04:16

May 7 (Reuters) - Australia's Super Retail SUL.AX reported flat like-for-like sales so far in the second half of the year, citing a pullback in consumer demand across all its four brands following the Iran war, sending its shares to a near three-year low on Thursday.

After the bell on Wednesday, the retailer said like-for-like sales rose only a meagre 0.4% while gross margins were "modestly below the prior comparable period."

Sales momentum across all the brands has been hit by the onset of the Middle East conflict, while inflation and higher interest rates further weigh on consumer sentiment, Super Retail said.

Shares of the retailer plunged as much as 13.6% on Thursday to A$10.08, hitting their lowest level since June 27, 2023, as well as marking their worst intraday session since February 20, 2025.

The company also raised its annual cost forecast to A$66 million ($47.80 million) from A$60 million previously expected, citing expenses related to a new distribution centre and the rollout of a new payroll system.

Super Retail said it invested nearly A$30 million in additional working capital, primarily in its key Supercheap Auto business, to secure inventory and mitigate the impact of potential supply-chain disruptions from elevated fuel costs.

Supercheap Auto and sporting goods brand Rebel, which together accounted for more than 70% of group sales in fiscal 2025, posted like-for-like sales growth of 1.6% and 1.4%, respectively, in the second half so far.

Outdoor clothing retailer BCF saw a 3.3% decline in same-store sales, which the company attributed to higher fuel prices and supply-chain challenges deterring outdoor activity participation.

($1 = 1.3806 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Subhranshu Sahu)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))