Australia's Super Retail hits record high after annual results meet market expectations

SUPER RETAIL

22/08/2024 07:30

By Rajasik  Mukherjee
       Aug 22 (Reuters) - 
    Australia's Super Retail Group's  SUL.AX  shares rose as
much as 8% to hit a record high on Thursday after the company's
annual sales met market expectations.
        The also logged its best intraday session since
mid-August 2023. It closed at A$17.70, 6.2% higher than its
previous close. 
  
        Super Retail Group, which sells auto parts, boating and
camping equipment, has been plagued by a slew of controversies
since early 2023, including issues related to underpaying its
staff.
  
        The company reported a 2% rise in group sales to A$3.9
billion ($2.63 billion) for fiscal 2024, in-line with Visible
Alpha consensus estimates and slightly ahead of Jarden's
expectation of A$3.88 billion. 
  
        It attributed the increase in sales to its investment in
its store network, which included 23 new store openings for the
period, as well as a 9% growth in online sales.
  
    The retailer also reported a 3% jump in group like-for-like
sales for the first seven weeks of the new fiscal year.
    "LFL (like-for-like) sales for the first seven weeks
indicate a pick up for all brands since the last trading
update," Citi analysts said in a note. 
        The Queensland-based firm, however, reported a 9%
decline in net profit after tax (NPAT) to A$242 million, but
this was still 3% above Jarden's estimates. 
  
        It said a high-interest rate environment and increasing
expenses bit into the bottomline along with consumers cutting
back on spending. 
  
    "A good result by SUL....a positive start to the year and
ongoing share gains. We would expect 1H25 consensus to rise on a
stronger start to FY25E," Jarden analysts said in a note. 
    Super Retail declared a final dividend of 37 Australian
cents per share and a special dividend of 50 Australian cents. 
    

($1 = 1.4839 Australian dollars)

 (Reporting by Rajasik  Mukherjee in Bengaluru; Editing by Sonia
Cheema)
 ((Rajasik.Mukherjee@thomsonreuters.com;))