Super Retail Group had a mixed trading update at its AGM. Sales trends are weak but the earnings outlook is resilient. Group LFL sales slowed from +1.5% in the first seven weeks of FY27e to -1.3% for the remaining six weeks. The sales swing was across all divisions and partly reflects economic conditions and also promotional activity that boosted sales in the early part of the year. Sales are likely to remain weak through to the end of 1H28e in our view. While sales are soft, Super Retail Group has gross margin gains through currency and labour cost savings to offset the sales pressure.

Breville reported strong constant currency sales growth of 9% in 1H26, but tariff headwinds resulted in an almost flat EBIT result. Sales momentum may soften a little as the retailer sell-in eases and price inflation drops over 2026. We expect the company to maintain a tight control on costs in 2H26e to meet EBIT guidance of “slight” growth. The continued growth of the coffee category, new product launches and new markets support ongoing EBIT growth near 10%, noting the company does face a headwind from a stronger Australian dollar in FY27e.