Australia's Super Retail plunges on flagging 'challenging macro'

SUPER RETAIL

04/05/2023 06:59

(Adds comment from Morningstar, updates share movement)
    ** Shares of Australia's Super Retail Group  SUL.AX  fall as
much as 7.6% to A$12.36, their lowest since March 30
    ** The auto goods giant said on Wednesday it was
experiencing higher costs due to inflationary pressures on
labour, rents, and energy costs, as well as delays in new shop
opening
    ** Co flags risks attached to year-long delay in store
opening plans, reflecting a challenging "macro environment"
    ** Co says some stores are now scheduled to open in FY24
    ** SUL has launched 14 stores in fiscal 2023 year-to-date,
and is currently eyeing another 13 stores by June-end
    ** Morningstar says it expects Super Retail's sales momentum
to continue to wane and competition to intensify in the near
term
        ** The brokerage maintains its price target of A$9.50 
  
    ** Stock up 25.6% this year, as of last close 
    

 (Reporting by Rishav Chatterjee and Mehr Bedi in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))