The Reject Shop has reported increases in both sales and profit for the fiscal first half.

The company’s sales rose 2.9 per cent year-on-year to $471.7 million while comparable store sales were up 1.5 per cent.

Management said the sales uplift was driven by higher basket counts and customer transactions, with growth recorded for both general merchandise and consumables products.

Pre AASB 16 earnings before interest and tax increased 16.2 per cent to $19.4 million and net profit after tax grew 14.6 per cent to $14.3 million.

“The Reject Shop reported a strong first half result and, pleasingly, the positive sales momentum has continued into the second half,” said chairman Steven Fisher.

“Management’s focus during FY25 has been to improve gross profit margin, deliver comparable store sales growth and continue opening new stores. 

“These strong results demonstrate that we are currently on track to deliver all three of these objectives this financial year while also maintaining a strong balance sheet, with approximately $75 million in cash and no drawn debt at the end of December 2024,” he added.

At the end of the half, The Reject Shop’s national store network included 393 stores, up from 383 at the end of December 2023.

Sales during the first seven weeks of the second half were up 3.6 per cent, with comparable store sales up 1.4 per cent.