EDV –3.8%: dropped after a softer 3Q update, with sales growth showing signs of slowing as cost-of-living pressures begin to impact consumer spending.
- Sales: $2.93bn, +3% y/y
- Retail sales: $2.40bn, +2.9% y/y
- Hotels sales: $531m, +3.7% y/y
The key issue was decelerating momentum, with 2H-to-date retail sales growth slowing to just 0.7%, while hotel growth also moderated toward the end of the quarter. The slowdown reflects increasing pressure on discretionary spending as higher fuel and living costs weigh on consumers.
Margins are also facing headwinds, with elevated fuel and freight costs expected to add $6–8m in supply chain expenses in the second half. Inventory levels are rising, which will temporarily increase leverage as working capital builds.
Management is targeting A$100m in cost savings by FY27, though in the near term the focus remains on navigating a softer consumer environment.
MM remains neutral EDV
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