Super Retail Group Ltd (ASX:SUL) shares have surged 15% to a 5-month high of $14.56 after the retailer delivered FY26 net profit after tax ahead of market expectations, putting the stock on course for its strongest trading day in 6 years.
The company reported net profit after tax of $226 million, beating consensus forecasts by 11%, helped by a stronger performance from Rebel and a lower corporate tax rate.
Rebel benefited from increased demand associated with the World Cup, while Super Retail’s financial year-to-date trading has also outperformed peers.
Barrenjoey head of consumer research Tom Kierath said that beyond the headline numbers, the competitive environment facing the group had intensified.
Super Retail’s new management team is targeting growth through improved execution rather than acquisitions, with plans centred on expanding product ranges, increasing the store footprint and sharpening the company’s focus on customers.
The strategy places greater emphasis on organic growth and operational performance as management seeks to deliver sustained earnings gains.
“We think if the company can consistently deliver on its aim of mid to high single digit profit growth, investors will reward it, though we aren’t sure that they have earned the right to embark on what looks like an aggressive store rollout, but time will tell,” Kierath said.
The sharp share price reaction suggests investors have responded positively to the earnings beat and stronger recent trading, although the success of the company’s planned store expansion will remain a key factor in determining whether that momentum can be sustained.