For a second straight quarter, Endeavour Group has reported mixed results as subdued retail spending led to a dip in sales, while hotel sales increased following strong performance across key events.
In a statement to the ASX, Endeavour Group reported sales were ‘broadly flat’ compared to the previous corresponding period, dipping just 1.7 per cent, while retail sales were down 3.1 per cent to $2.3bn.
Group Executive Chairman Ari Mervis attributed the decline in sales to reduced consumer spending in the period along with the timings of key holidays.
“In Q3 Hotel sales improved while off-premise demand remained subdued, and our retail business continued to recover from the impact of supply chain disruption. The reported Q3 sales growth performance for retail and hotels also reflect the misalignment of the key Easter holiday trading period, which occurred in Q3 in F24 compared to Q4 in F25,” he said.
Despite this, Mervis added: “We have made an encouraging start to Q4. In retail we delivered an Easter sales result in line with Easter sales in the previous year and in hotels we continued to see good growth across all drivers (food, bars, gaming and accommodation).”
On a 16-week normalised basis, retail sales decreased by 1.3 per cent compared to 2024, with combined Dan Murphy’s and BWS sales down one per cent.
While comparable store sales in Dan Murphy’s and BWS were 3.7 per cent down, total online sales growth for the liquor retailers was up 6.7 per cent and accounted for 8.4 per cent of total retail sales.
The group said Dan Murphy’s experienced higher online sales, while the strong online sales growth in BWS was driven by increased sales via ultra-convenience partners.
BWS’ exclusive app-based pricing offer, Appy Deals, continued to drive strong traffic and customer engagement with average monthly active app users increasing to 680,000 for the quarter.
In the reporting period, Dan Murphy’s was also recognised as Australia’s Liquor Store of the Year for the third consecutive year at the Roy Morgan Customer Satisfaction Awards.
While hotels sales for the quarter were up 5.1 per cent to $512m compared to 2024 as momentum improved during the quarter with strong performance events including Australia Day, St Patrick’s Day, Valentines Day and the start of the NRL and AFL.
In particular, food and beverage value has resonated with customers, supported by the rollout of pub+.
Gaming also remained resilient, with Victoria and Queensland exhibiting the strongest growth with the group increasing its market share in Victoria and delivering an improved gaming performance in Queensland.
Endeavour Group reported three hotel renewals in the quarter at Oxford 152, Crows Nest Hotel and Macquarie Inn, with an additional eight renewals to be completed by the end of the financial year.
“We continue to progress our property strategy with the development application lodged for a 140-room Nightcap Plus hotel in a residential tower containing 245 apartments at The Morrison Hotel (Queensland) site. The Group remains on track to lodge a further two development applications for The Forest Hotel (New South Wales) and the Doncaster Shoppingtown Hotel (Victoria) by the end of F25,” said the statement.
Looking ahead, the Group expects retail conditions to gradually improve as inflation moderates, despite subdued consumer spending activity outside of key social occasions and only a limited number of these events left this financial year.
“Our priorities for the remainder of F25 are to drive sales momentum in our retail business through price and value leadership and to progress the optimisation of our hotels portfolio while retaining our capital discipline. In line with the Group’s strategy to focus and simplify the business, we will continue to pursue opportunities to optimise our assets and cost base to ensure we deliver appropriate returns for shareholders,” said Mervis.
Mervis said plans to add three net new stores and complete 14 renewals across Dan Murphy’s and BWS in the fourth quarter will expand and improve the group’s retail offering.
Additionally, the Group noted the decision to close its Prowine bottling facility at Gawler in South Australia which is expected to result in an impairment of up to $15m on a pre-tax basis which is expected to be recognised in the upcoming full year financial results.
Additionally, Jayne Hrdlicka was last week announced as group’s new managing director and CEO set to start in her role on 1 January 2026.
“Jayne is a highly experienced business leader, with the skills and expertise to lead the business in our next phase of growth,” said Mervis.