Endeavour Group’s 1Q27 trading update revealed Retail sales growth of 3.0% and Hotels growth of 1.9%. Whilst this is a continuation of above-market growth in Retail, both off-premise liquor and gaming industry growth have slowed. We are cautious about any material improvement in sales from here, given Endeavour is lapping its price reset. The downside to gross margins from softer gaming sales and promotions should play out by the end of FY27e as EBIT troughs.