SRG shares dive on sales result

 

Rebel sportShares in Super Retail Group (SRG) have dived more than 16 per cent following a weaker than expected sales result.

SRG lifted sales six per cent during the first half of the 2013/14 financial year, which is well down on the 23 per cent increase recorded last year.

Shares in the company dived from Thursday’s close of $12.50 to as low as $9.50 on the result, before lifting back to around $10.59.

The company expects to record a profit of between $61 million and $62 million for the first half of the 2013/14 financial year, which is an increase from the $60.6 million profit recorded for the same period last year.

Peter Birtles, CEO of SRG, said the result was worse than expected and the company, whose brands include Supercheap Auto, BCF, and sports retailer Rebel, was facing a number of short term challenges.

They include problems with the company’s IT system and the impacts of the slowdown in the mining sector.

“These are predominantly internal issues and we are confident these have now been addressed,” he said.

“We have implemented a number of initiatives to underpin gross margin performance across all three divisions in the second half.

AAP

Comments

Comment Manually

Inside Retail Polls

What were the biggest challenges during the 2019 holiday period?
Vote

Twitter

NSW-based party retailer The Party People plans to open two to four large-format pop-ups across the country this year. #retail #ausbiz

17 hours ago

Aussie-born Mexican fast food chain Guzman y Gomez was founded by two Americans. Now the company has opened its fir… https://t.co/YSpPCaYvzK

1 day ago

Alceon Group is reportedly in talks to bring more international brands to Australia. We caught up with Richard Faci… https://t.co/r8pEbdRfWK

1 day ago