Max Stock Boosts Revenue and Net Profit Despite Shekel Strength Impact

Max Stock, the Israeli discount retail chain managed by founder Uri Max, reported a 13% revenue increase to approximately 379 million shekels in Q2 2026, up from about 336 million shekels in the same quarter last year. This growth was driven by a 7% rise in same-store sales and the opening of new branches. The company attributed the sales increase to more customers visiting stores and a higher average basket size, despite the timing of Passover affecting quarterly results differently than in 2025.

The shekel's sharp appreciation in Q2 2026, while generally beneficial for importers like Max Stock, partially offset net profit growth due to currency hedging losses. The gross profit margin improved to a record 47.1% from 43.8% a year earlier, mainly due to the weaker dollar against the shekel. Additionally, improved trade terms and reduced logistical expenses following the ramp-up of a new logistics center in Shomria contributed positively.

Net profit rose about 30% to 36 million shekels (9.5% of sales), compared to 28 million shekels (8.2% of sales) in Q2 2025. This increase was mainly due to higher gross margins and lower administrative costs as a percentage of sales but was partially offset by a net financing loss of 27 million shekels related to currency hedging, compared to a 16 million shekel loss in the prior year. Max Stock holds future dollar purchase hedges totaling roughly 112 million dollars spread over 2026 to 2028.

For the first half of 2026, revenues grew 15% to 780 million shekels from 675 million shekels, with net profit up 45% to 86 million shekels (11% of revenues) versus 59 million shekels (8.8%) in the same period last year. The company’s stock has risen 35% since the start of 2026, valuing Max Stock at about 4.8 billion shekels.

Key factors behind the financial results include increased customer traffic, a new logistics hub, and currency fluctuations impacting profitability through hedging costs.