Super Retail shares slide as trading softens
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Super Retail Group dipped on the ASX after the retailer warned of an uncertain outlook as consumers struggle with cost-of-living pressures.
Super Retail shares were down 2.2% to $16.39 by 12:50pm AEDT.
E&P Capital retail analyst Kade Madigan noted that sales growth in Super Retail's biggest business, Supercheap Auto, has slowed over the last nine weeks.
Overall group sales growth decelerated from 5% in the first seven weeks of the quarter to 4%, driven by a large number of store openings in the period.
Madigan flagged that gross margins at Super Retail's Rebel business have been negatively impacted by 140 basis points, due to the ongoing impact of the a new loyalty program.
Super Retail lifts sales but says outlook uncertain
The news: Supercheap Auto and Rebel-owner Super Retail Group says it had a positive start to the financial year but warned of an uncertain outlook as consumers struggle with cost-of-living pressures.
The numbers: The retail giant said total sales for the first 16 weeks of FY25 were up 4% from a year ago, while like-for-like sales improved 2%. The group plans to open a total of 25 new stores in FY25 across its brands, with larger investment in the first half.
The context: Ahead of its annual general meeting later on Thursday, the group said Supercheap Auto’s performance was driven by the auto maintenance category, but noted sales have “demonstrably slowed” in New Zealand and competitive intensity has increased, requiring an increase of promotional activity. Growth was largely flat at sports retail chain Rebel, with additional clearance activity to improve seasonal inventory position. The group has seen continued growth in fishing, caravan and 4WD at its BCF network, while Macpac delivered growth in insulation, rainwear and packs.
Chief executive Anthony Heraghty said while inflation appears to be gradually easing, the group expects continued upward pressure on its cost base in FY25. “The outlook for the consumer remains uncertain, given ongoing cost of living pressure on household budgets,” he said.
The source: ASX announcement
