The Endeavour Group Ltd (ASX: EDV) share price is continuing to fall again on Thursday.
At the time of writing, the company's shares are down 1.17% to $3.39. This marks 6 consecutive sessions in the red for the embattled drinks group.
Notably, earlier in today's session, the stock fell to $3.38, hitting a fresh record low.
The latest move adds to a weak run in 2026, with Endeavour shares now down around 7% since the start of the year.
Here's what investors are seeing.
Pressure builds after recent results
The recent weakness follows the company's half-year results, which highlighted mixed operating trends.
Group sales rose 0.9% to $6.7 billion. However, profitability moved in the opposite direction. Underlying net profit after tax (NPAT) fell 6.7% to $278 million, while statutory profit dropped 17.1% to $247 million.
The company also cut its interim dividend by 13.6% to 10.8 cents per share.
Margins remain under pressure as the business invests in pricing to stay competitive.
Management has been clear that price leadership is a focus, especially across its core retail brands. While this is supporting volumes, it is weighing on near-term earnings.
Brokers take a conservative stance
Broker updates following the result have been broadly neutral.
According to recent commentary, there were no major surprises in the numbers, with performance largely in line with earlier trading updates.
However, outlook changes have been modestly negative. One broker trimmed its EBIT forecasts for FY26 to FY28 by up to 4% and lowered its price target to around $3.65, while maintaining a hold rating.
The key takeaway across updates is that earnings are expected to remain under pressure as the company continues to invest in pricing and its hotel network.
What the chart is showing
From a technical view, the trend line remains weak.
The share price is trading near the lower end of its bollinger band range, which is suggesting sustained selling pressure.
Momentum indicators also point to a soft setup. The relative strength index (RSI) is sitting in the mid-40s, telling us the stock is neither oversold nor showing signs of strong buying interest.
With the stock now at record lows, there is limited visible support below current levels. Previous price action suggests the $3.80 to $4 range may now act as resistance.
Foolish Takeaway
Endeavour shares are continuing to drift lower following a soft earnings update and a cautious broker outlook.
The business remains focused on improving competitiveness through pricing and investment across its retail and hotel operations.
However, this strategy is weighing on margins in the near term, as reflected in both earnings trends and the share price.
The post This ASX retail giant's shares just hit a record low. What's going on? appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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