Super Retail Group’s increased promotional activity at Rebel has eroded margins in the first half of FY26, contributing to a near 20% fall in statutory profit despite steady revenue growth.

The retail group posted statutory net profit after tax of $104 million for the 26 weeks to 27 December 2025, down 19.8% from $130 million a year earlier and below analyst forecasts of $117.8 million. Group revenue rose 4.2% to $2.19 billion.

Group gross margin slipped 20 basis points to 45.4%, largely driven by a 40 basis point decline at Rebel as promotional intensity ramped up in the second quarter. Demand patterns at the sporting goods chain were variable across the half, even as total sales increased 4.8% to $740.4 million.

Rebel’s profit before tax fell 11.4% to $53.1 million, with margin down 130 basis points to 7.2%.

The decline reflected lower gross margin and operating deleverage, with cost of doing business rising 7.3%.

Store network activity, including seven openings, six closures and four refurbishments or relocations, added to property-related expenses.

Online sales at Rebel grew 5.9% to $146.3 million, accounting for 19.8% of total sales. Click & Collect represented 28.8% of online revenue. Active club membership increased 6.7% to 4.3 million, contributing 82.4% of Rebel sales.

Across the broader portfolio, Macpac was a standout, delivering 13.1% sales growth to $121.5 million, although clearance activity trimmed its gross margin by 60 basis points. BCF posted a modest 0.3% sales rise, with like-for-like sales down 1.6% due to weather disruptions in southern states. Supercheap Auto recorded a 5.1% lift in sales.

In January, Super Retail warned profits would come in below expectations in its first trading update since the board sacked former CEO Anthony Heraghty over an undisclosed relationship with the company’s ex-HR chief.

Newly appointed chief executive Paul Bradshaw (pictured), who took over in November amid the fallout, said heavy discounting, particularly at Rebel, was weighing on margins.

Bradshaw described the most recent result as a “solid outcome” given competitive conditions, noting higher business costs and investment in a new Victorian distribution centre and HR and payroll systems also weighed on earnings.

The board declared a fully franked interim dividend of 32 cents per share.