SUPER RETAIL GROUP STAYS AFLOAT IN TURBULENT INDUSTRY
Written on the 25 August 2017 by Yasmin Bonnell
THE RETAIL industry has experienced its fair share of troubles this financial year, but Super Retail Group Limited (ASX: SUL) has cut through the noise to deliver a 25 per cent increased normalised net profit of $135.8.
The company, responsible for brands including Rebel, Supercheap Auto and BCF, has also increased EBIT by 18.3 per cent to $207.3 million and generated total sales worth $2.5 billion.
Managing director and CEO for Super Retail Group Peter Birtles (pictured) says the company's strong performance is largely due to its online platforms.
"We continue to see large increase in the number of customers interacting with our brands through our digital channels," says Birtles.
"This is not only generating significant growth in digital sales, particularly through click-and-collect, but is also helping our customers make their buying decisions before coming into store to complete their purchase."
As margins across all divisions increase, he says Super Retail Group will continue to invest in its core business development to achieve growth.
"We will continue to invest in the growth and refurbishment of our store network and in the development of our digital, IT, supply chain and analytics capabilities.
"We anticipate capital expenditure in the year ahead of circa $120 million," Birtles says.
In July the group announced that it would be converting all its Amart branded retail stores to Rebel Stores by October 31, a strategy which will allow the company to focus on a single brand.
Super Retail Group has predicted the move will increase the value of Rebel sports by $15 million in two years and bring the Rebel Sports brand footprint to almost 160 stores.
The company has declared a final full-year dividend of $46.5 cents, up 12 per cent on FY16.
At the time of writing (1:04pm AEST), SUL shares are trading up by around 8.4 per cent at $7.83.
Business News Australia
Author: Yasmin Bonnell