Super Retail Group's (ASX:SUL) profit before tax missed expectations due to pressure on Rebel's gross margin, weak sales in the boating, camping, and fishing business, and operating deleverage in the automotive segment, according to a Monday Jefferies note.

The company on Monday reported total sales growth of 4.2% for the first 26 weeks of the fiscal year ended Dec. 27, 2025, and like-for-like sales growth of 2.5%.

Jefferies said that group sales were "reasonable" overall, but achieving them required higher levels of discounting due to category-specific challenges and a weaker retail environment in December.

The contraction in Rebel's gross margin increases the risk of negative outcomes related to Sports Direct, the note added.

The investment firm added that although Sports Direct has not yet had a direct impact, aggressive discounting by key brands through their direct-to-consumer channels raises concerns about their willingness to partner with Rebel.

Jefferies kept a hold rating on SUL and reduced its price target to AU$15.50 from AU$16.50.

Super Retail Group's shares fell 1% in recent Tuesday trade.