Yesterday saw JB Hi-Fi (JBH) fall the most in 3 months as the retail stocks endured a tough day at the office, SUL fared even worse ending down -3.9% as profit-taking seemed to hit some of the sector’s best performers year to date. SUL has struggled since it delivered a trading update earlier this month when presenting at the Macquarie Conference. Sales growth was strong, though it moderated across most brands compared to the previous update, Super Retail is facing a consumer market with a number of cost headwinds including heavy discounting by their peers to gain market share, particularly impacting the BCF brand.
- From a risk/reward perspective we like SUL around ~6% lower, a meaningful pullback from its April high.
MM likes SUL under $11.50
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