Economy

Super Retail Group posts 23% net profit increase, Reject Shop sales up but profit slips: Midday Roundup

Yolanda Redrup /

The corporate owner of retail brands including Rebel, Ray’s Outdoors and Supercheap Auto has posted a 23% increase in net profit for the year to June 29 this morning.

Super Retail Group’s net profit of $102.7 million comes thanks to strong sales in its automotive and leisure retail divisions, as well as larger-than-expected contributions from the recently acquired Rebel and Amart Sports businesses.

“We believe our customers will continue to spend money on their passions even when they tighten their belt in other areas,” Super Retail Group chief executive Peter Birtles says.

“The key drivers of our performance continue to be merchandise renewal and presentation, private brand development, engaging marketing, sourcing and supply chain execution, as well as the passion of our team members.

“We are particularly pleased that our larger businesses – Supercheap Auto, BCF Boating Camping Fishing, Rebel and Amart Sports – have all grown market share and operating margins.”

Birtles says that in the year ahead, the company plans to open new stores and refurbish existing ones, while building the group’s online sales capabilities.

“The year ahead will be another year of growth and development,” he says.

Reject Shop sales up but profit slips

Discount retailer The Reject Shop’s full year net profits have slipped 11% to $19.4 million, despite its total sales increasing 13.3% to $618 million.

The Reject Shop’s comparable store sales lifted 1.8%, with most of its increase in sales coming from the 41 new stores it opened during 2012/2013.

In a statement about the results, the company says its profit results are “distorted” because of insurance amounts received in finalising the Queensland flood claims and additional costs of accelerating the opening of new stores.

“Despite poor consumer sentiment and retail sales trends we continue to trade well,” The Reject Shop managing director Chris Bryce says in a statement.

In the 2014 financial year the brand is planning to open more than 40 new stores.

Shares steady on open

Aussie shares have opened slightly up this morning, as overnight the US markets closed flat.

The S&P/ASX 200 benchmark was up 3.1 points just after midday. Losses from mining and energy companies were offset by smaller gains across the ball.

The Dow Jones closed 7.75 points lower at 15,002.99 overnight.

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