SRG off to a solid start
The retailer says sales from its auto division in the 16 weeks to October 18 were up four per cent.
Its sports division, which includes Amart and Rebel, lifted three per cent.
But its leisure business sales, which includes Ray’s Outdoors, fell three per cent.
Shares in Super Retail were up 33 cents, or 4.3 per cent, at $7.99 by 1325 AEDT.
Peter Birtles, MD of SRG, told shareholders at the company’s annual general meeting on Wednesday that the results were in line with expectations.
“We are pleased with the sales growth being delivered in both the auto and sports divisions,” he said.
“As forecast, the leisure division continues to be impacted by new store cannibalisation and weak trading conditions in mining and regional areas – this impact is expected to reduce in the second half of the financial year.”
He said sales at its leisure businesses, Ray’s Outdoors and FCO Fishing Camping Outdoors, were below expectations.
Birtles said gross margins were behind what they were during the same time last financial year.
“We are expecting a recovery is gross margins in the second half and to be in line with the prior period over the full year,” he said.
Meanwhile, the retailer plans to expand store numbers this financial year.
It has earmarked $90 million to be spent on new stores and refurbishments.
It expects to open about 10 new stores for its auto division and refurbish another 45 outlets.
Another four stores are planned for the leisure division, while two will close and three BCF superstores will be refurbished.
Fourteen stores will be added to the sports division, with the focus on expanding its Amart chain.
Five sports stores will close and 15 will be refurbished.