• Q3 F26 sales growth of 2.9% for Retail and 3.7% for Hotels
• H2 F26 HTD sales growth of 0.7% for Retail and 3.7% for Hotels
• Retail continuing to gain market share in a challenging macroeconomic environment
• Elevated fuel and freight prices expected to increase H2 F26 supply chain costs by $6m-$8m
• $100m in cost savings targeted in F27

Endeavour Group Ltd (ASX:EDV) has provided an update on its trading performance for H2 F26 to date, along with details on the impact of the ongoing Middle East conflict and a three-year cost reduction program that will deliver $100 million of savings in F27. In Q3 F26 (weeks 28-40), the company's Retail business saw sales growth of 2.9%, while Hotels grew 3.7%. For the H2 F26 period to date (weeks 28-43), Retail sales grew 0.7% and Hotels grew 3.7%. The Retail business has continued to gain market share in a challenging macroeconomic environment, with the Easter holiday trading period delivering an increase in sales compared to the prior year.However, sales momentum in Hotels began to soften in March, with growth across food, bar, gaming, and accommodation moderating due to growing cost of living pressures. The company has responded by adapting guest offerings to drive footfall and deliver greater value.The Middle East conflict is impacting Endeavour Group, with elevated fuel and freight prices expected to increase H2 F26 supply chain costs by between $6 million and $8 million, primarily reflected in Retail gross margin. The company is proactively increasing inventory cover for key fast-moving products to mitigate potential supply chain disruptions.As part of the company's strategic focus on simplifying the business, Endeavour Group is targeting $100 million of cost savings to be delivered in F27, through initiatives focused on store cost optimization, labor efficiencies, centralized administration, procurement savings, and support office headcount reduction.

The company expects elevated fuel and freight prices to increase H2 F26 supply chain costs by between $6 million and $8 million.

Endeavour Group is targeting $100 million of cost savings to be delivered in F27 as part of its strategic focus on simplifying the business and improving productivity and profitability.