Super Retail Group’s ‘favourable’ sales outlook

Super Retail GroupAuto and sports brands, Super Retail Group, said sales across its three divisions are in line with expectations and the transformation of its Ray’s Outdoors business is well under way.

Sales for the year ending April 30 saw a six per cent increase in Auto retailing, and nine per cent increase in Sports retailing. Leisure retailing saw a 5.5 per cent increase, which is slightly below last year’s growth.

“Auto and Sports continue to perform very well, delivering strong like for like sales growth and increases in both gross and EBIT margin,” said Peter Birtles, group managing director and CEO of Super Retail Group.

“We are also pleased with the recent strong sales performance from the BCF Boating Camping Fishing business with gross margins starting to lift as a result of rebalanced pricing and promotional strategies,” Birtles said.

The company stated a new Rays store concept has been developed and tested in five pilot stores which either opened or were refurbished in the second quarter of the 2015/16 financial year.

The early trading performance of the pilot stores, according to the company, ‘confirmed that profitable opportunities exist’ for the business, though the network will produce a loss this financial year.

The group plans to close or rebrand under-performing stores and update profitable stores to the new concept. There will be a $38 million write down of the business in addition to the $20 million impairment taken at the half year.

The group reported an interim net profit of $41.5 million at the end of December 2015.

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