Super Retail shares jump on record revenue forecast
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More news: Shares in Super Retail Group jumped 6.3% in early trading on the ASX to hit a record high of $16.80, after the owner of the Supercheap Auto and Rebel retail chains said it would post record revenue of $2.02 billion for the first half of its financial year. While profit before tax is set to be lower at $200 million to $203 million, it is still likely to be better than expected.
Super Retail set for record revenue but margins dip
The news: Supercheap Auto and Rebel owner Super Retail Group is set to post record revenue for the first half of its financial year, although net profit is likely to be lower compared to the same period last year.
The numbers: The retail giant said preliminary revenue for the first half to 30 December is expected to be $2.02 billion, an improvement from a year ago. However, profit before tax is likely to be in the range of $200 million-$203 million, down from $218 million a year ago.
The context: Chief executive Anthony Heraghty said the group’s retail brands traded well over the cyber sales and Christmas holiday trading period but its cost of doing business as a percentage of sales increased as a result of higher wages, rent and electricity. "We maintained positive like-for-like sales growth in the first half, however cost of living pressures on the consumer did lead to a more constrained retail trading environment at the end of the second quarter,” he said in a statement.
Like-for-like sales were up 3% for Supercheap Auto and 2% for BCF (Boating, Camping and Fishing). Sales were flat for Macpac and went backwards 3% at its Rebel stores. It will release half-year results on 22 February.
The source: ASX announcement
