Shufersal Reports Sharp Revenue and Profit Declines, Shares Plunge Over 7%
Translated & summarized from Mako by baba
Shufersal, Israel's largest supermarket chain, reported a 7.5% revenue decline and a 31% net profit drop in Q2 2026, citing holiday timing and reduced campaign impact. Same-store sales fell 8.5%, and shares fell over 7% after the report. The company plans a 180 million shekel dividend payout in October.
The story in 6 lines · by baba
- Shufersal's Q2 2026 revenues fell 7.5% to 3.41 billion shekels, net profit dropped 31% to 135 million.
- Same-store sales, a key performance indicator, declined 8.5% in Q2 and 2.7% in H1 2026.
- Company blames Passover timing and reduced impact of 'Roar of the Lion' campaign for sales drop.
- Private label sales rose to nearly 20% of total sales, aiming to boost profitability.
- Working capital deficit increased to 813 million shekels, but liquidity remains stable per management.
- Shares plunged over 7% after earnings release; a 180 million shekel dividend will be paid on October 1.
Shufersal, Israel's largest supermarket chain, reported a significant drop in its financial results for the second quarter of 2026. Revenues fell by 7.5% to 3.41 billion shekels compared to the same period last year, while operating profit plunged 36% to 170 million shekels. Net profit also declined sharply by 31%, reaching 135 million shekels. The critical metric of same-store sales, which measures performance in stores open during both periods, dropped by 8.5% in the quarter.
The company attributed the downturn primarily to the timing of the Passover holiday, which this year concentrated its impact in the first quarter, and a reduced effect from the "Roar of the Lion" campaign that had boosted sales in March and early April. Despite these explanations, the results suggest a possible decrease in customer purchasing amid Israel's high cost of living. For the first half of 2026, revenues decreased by 1.6% to 7.1 billion shekels, net profit fell 12% to 310 million shekels, and same-store sales declined by 2.7%, indicating a worsening trend as the year progressed.
Shufersal's private label products increased their share of total sales to 19.7% in the quarter and 20.4% for the half-year, reflecting a strategic effort to improve profitability. The company also reported a working capital deficit of 813 million shekels as of June 30, up from 653 million shekels a year earlier, signaling increased cash flow pressure. However, management assured that available cash reserves and credit lines mitigate liquidity concerns.
Following the disappointing earnings release, Shufersal's shares dropped more than 7% in Tel Aviv stock trading. The board declared a dividend payout of 180 million shekels to shareholders, scheduled for October 1. The controlling Amir brothers continue to lead the company and its strategic initiatives amid these challenging market conditions.
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