Super Retail Group sales up 1% to $3.6 billion

Super Retail Group says sales rebounded in the second half of fiscal 2022 and the new year is off to a good start, but expects that momentum to slow as interest rates rise and inflation bites.

The owner of the Supercheap Auto, Rebel Sports, BCF (Boating, Camping and Fishing) and Macpac brand announced on Wednesday sales of $3.55 billion for the 53 weeks to July 2.

This represents sales growth of 1.0% over the prior year, after adjusting for the fact that it was a shorter week.

Super Retail Group announced its normalized profit after the tax cut after a 20% tax cut to $244.1 million as the company faced higher costs from supply chain disruptions worldwide, in particular at BCF, and has invested in its network of stores.

The company renovated some existing stores and opened 21 new ones, for a total of 716 stores in Australia and New Zealand.

The result beat consensus estimates of $223 million in net profit after tax (NPAT). Shares of Super Retail Group rose 7.5% to hit a six-month high of $10.99 at 10:43 a.m. AEST.

Chief Executive and Managing Director Anthony Heraghty said it was a “solid set of financial results with another year of record sales”.

Online sales increased 44% to $601 million, or 17% of total group sales. Click and Collect sales increased 73% to $332 million, representing 55% of all online sales.

In the first six weeks of FY23, sales were up 17% from a year ago, but much of Australia was in lockdown by then.

“While current trading remains strong, the Group expects rising interest rates and the cost of living to begin to impact consumer spending in the second half of the year and high levels of demand that have arisen during the pandemic are beginning to decline,” Super Retail Group said, adding it is taking steps to control costs.

It is also targeting up to 30 store openings in 2022/23, including a BCF hypermarket in Townsville.

The company reports that 11 rCX (Rebel Customer Experience) concept stores are now open and performing and plans to convert five more of its 155 Rebel stores to the format, which offers a more immersive customer experience including games and a sports center.

The retailer declared an all-frank final dividend of 43 cents per share, up from 55 cents per share a year ago.

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