SUL -7.14%: the retailer slipped to 5-week lows today following a trading update last night ahead of their Macquarie Conference presentation. Sales growth was strong, though it has moderated across most brands since the previous update ~10 weeks ago. LFL Group sales for the first 43 weeks was +9%, where that number was +10% at the prior update with Super Cheap, Rebel and Macpac all showing moderating growth while BCF was marginally higher. In addition, the company said 2H margins were tracking marginally below 1H with labour, energy and rent costs higher, though freight has moderated. Super Retail is facing a consumer market with a number of cost headwinds, while they also noted peers have been heavily discounting to gain market share, particularly impacting the BCF brand.
MM would be interested in SUL ~10% lower
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