The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is in focus today after the company reported FY26 results highlighted by revenue down 11.2% to $2,046.1 million and a statutory net loss after tax of $134.2 million.

What did Domino’s Pizza Enterprises report?

• Revenue: $2,046.1 million, down 11.2% year on year
• Statutory NPAT: Loss of $134.2 million (impacted by significant non-cash items)
• Underlying NPAT: $121.6 million, up 4.0%
• EBITDA: $325.4 million (underlying, down 6.1%)
• Final dividend: 32.5 cents per share, unfranked (total FY26 dividend 57.5 cents, down 25.3%)
• Net tangible assets per share: $(5.04) (FY25: $(6.41))

What else do investors need to know?

Domino’s statutory loss included $255.7 million in non-cash write-downs and impairments, mainly for its France and Taiwan businesses, along with technology assets and some underperforming corporate stores. Underlying profit increased, reflecting efforts to boost franchisee profitability, cut costs, and reset pricing strategies.

Same store sales fell 4.1% globally, with Australia and New Zealand down 4.7%, Europe down 2.2%, and Asia down 6.7%. The company will close up to 60 stores across regions to sharpen the network’s overall health, with anticipated $11 million in annual EBIT benefit. Meanwhile, franchisee profitability improved, and net leverage improved to 1.86x following cost reductions and reduced net debt.

What’s next for Domino’s Pizza Enterprises?

The company is aiming to return to profitable growth in FY27 after a period of resetting its store network and business model. Building on positive trials in Western Australia, Domino’s plans to roll out a revised pricing and operating model across Australia, focusing on long-term franchisee profitability and less reliance on aggressive discounting.

Domino’s remains committed to improving operational efficiency and supply chain resilience, preparing to meet ongoing consumer and regulatory changes. New CEO Andrew Gregory has taken the reins, signalling a focus on both network expansion and disciplined execution.

Domino’s Pizza Enterprises share price snapshot

The Domino’s share price has modestly outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of around 4%.

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The post Domino’s Pizza Enterprises posts FY26 loss but boosts franchise profitability appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Australia’s property market has spent years making homeowners feel wealthier. Now, that powerful tailwind may be starting to reverse.

National home values fell 0.7% in July, according to Cotality, marking the sharpest monthly decline since December 2022. Sydney and Melbourne led the falls, but the downturn also spread to Brisbane and Adelaide.

More importantly for retailers, values across the most expensive quarter of the housing market dropped 3.2% over the three months to July.

That could have consequences well beyond the property sector.

How the wealth effect works

The wealth effect describes the tendency for households to spend more when their assets rise in value.

Homeowners do not need to sell their property or withdraw equity to feel richer. A rising valuation can provide the psychological permission to upgrade the television, replace the lounge, renovate the kitchen, or book an overseas holiday.

Research from the Reserve Bank of Australia found a positive and persistent relationship between household wealth and consumption. The effect was strongest across motor vehicles, durable goods, and other discretionary purchases.

The RBA estimated that a permanent 1% increase in housing wealth lifted the long-term level of consumption by around 0.16%.

However, the relationship can work in reverse.

Falling property prices do not necessarily create an immediate financial problem for homeowners. But they can weaken confidence and encourage households to defer purchases that are not essential.

That puts furniture, electronics, appliances, and other big-ticket categories near the front line.

Two quality ASX retailers under pressure

That backdrop helps explain the recent weakness in two long-term retail winners.

JB Hi-Fi Ltd (ASX: JBH) suffered its worst single-session decline on record earlier this month. The JB Hi-Fi share price crashed 12.3%, despite the company reporting record FY26 sales of over $11 billion and a 6% increase in statutory net profit to $489.9 million.

The concern was not the year just completed. It was the direction of current trading.

Comparable sales at JB Hi-Fi Australia declined 0.8% during the fourth quarter before falling another 1.4% in July. Comparable sales also declined at The Good Guys.

Management noted that customers were increasingly seeking value and concentrating their spending around major promotional events. That could place pressure on margins if deeper discounting is required to maintain sales volumes.

Furniture retailer Nick Scali Ltd (ASX: NCK) is exposed to a similar dynamic. The Nick Scali share price is down more than 35% over the past 12 months, at the time of writing.

Yet its FY26 results hardly resembled a business in distress. Group revenue increased 4.3% to $516.7 million, while net profit after tax rose 22% to $75.7 million on an underlying comparison.

The warning was again in the outlook. Written sales orders across Australia and New Zealand were flat during the first five weeks of FY27, following softer trading during the second half.

What should investors watch?

A weaker housing market does not automatically make JB Hi-Fi or Nick Scali poor businesses.

Both companies have strong brands, experienced management teams, healthy balance sheets, and long records of rewarding shareholders. Quality retailers can also use difficult conditions to win market share from weaker competitors.

Australia’s strong employment market and rising household incomes could provide another important cushion. The RBA has previously found that falling wealth is less damaging to consumption if jobs and income growth remain firm.

Still, investors may want to watch comparable sales, store traffic, inventory levels, gross margins, and the depth of promotional activity over the coming months.

The wealth effect helped support discretionary spending while Australian property prices climbed. If that effect is now reversing, retailers selling the purchases that households can postpone may feel the pressure first.

For long-term investors, the key question is whether recent share price declines reflect temporary weakness in the consumer cycle or something more permanent in the underlying businesses.

The post Are falling house prices hurting ASX retail shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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 recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Worley Ltd (ASX: WOR) share price is in focus today after the engineering services company reported a statutory NPATA of $306 million for FY26, with aggregated revenue largely unchanged at $12.0 billion.

What did Worley report?

• Aggregated revenue of $12,023 million, stable on the prior corresponding period
• Underlying EBITA fell 10.8% to $734 million
• Underlying NPATA down 16.8% to $395 million; statutory NPATA down 35.6% to $306 million
• Final unfranked dividend of 25 cents per share declared
• $500 million share buyback completed; additional $24 million spent on new buyback
• Bookings rose 23% to $15.5 billion; backlog increased 9% to $13.8 billion

What else do investors need to know?

Worley’s FY26 underlying earnings were impacted by ongoing conflict in the Middle East and foreign currency movements, as well as $120 million in transformation and restructuring costs. Revenue growth remained strongest in the Americas, while challenges in Europe and the Middle East held back some regions.

The group continues to deliver cost savings, achieving $132 million in cost-out initiatives, which surpassed their target. Strong project wins were recorded across energy, resources, and key growth areas such as energy transition materials. Sole-sourced wins made up 44% of bookings, reflecting customer confidence in Worley’s capabilities.

What did Worley management say?

Commenting on the results, Worley’s CEO, Chris Ashton, said:

While activity levels remained strong in some parts of the business, particularly in the Americas; the Middle East conflict, and softer market conditions have affected growth in other regions. Notwithstanding this, solid demand drivers in the markets where we operate, together with our growing pipeline, strong customer relationships and disciplined focus on delivery, continue to underpin growth and we expect mid to high single-digit growth in both aggregated revenue and underlying EBITA in FY27.

What’s next for Worley?

Looking ahead, Worley is optimistic about continuing growth, with management guiding for mid to high single-digit increases in both aggregated revenue and underlying EBITA in FY27. The company expects stronger activity in the second half, especially as delayed Middle East projects progress.

Worley is focused on expanding project delivery capability, investing in AI and digital platforms, and targeting high-growth sectors including integrated gas and energy transition materials. Strategic partnerships and further investment are planned to build scale in markets such as power, data centres and critical infrastructure.

Worley share price snapshot

The Worley share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 12%.

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The post Worley FY26 earnings: profit down, pipeline up appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.