Super Retail Group says sales rebounded in the second half of fiscal 2022 and the new year is off to a strong start, but it's expecting that momentum to slow as interest rates hikes and inflation bite.
The Supercheap Auto, Rebel Sports, BCF (Boating, Camping and Fishing) and Macpac brand owner on Wednesday reported $3.55 billion in sales for the 53 weeks to July 2.
That's sales growth of 1.0 per cent compared to the prior fiscal year, when adjusted for the fact it was a week shorter.
Super Retail Group reported its normalised profit after tax fell after tax fell 20 per cent to $244.1 million, as the company faced increased costs from global supply chain disruptions, particularly at BCF, and invested in its store network.
The company refurbished some existing stores and opened 21 new ones, for a total of 716 stores across Australia and New Zealand.
The result beat consensus estimates of $223 million in net profit after tax (NPAT). Shares in Super Retail Group shares were up 7.5 per cent to a six-month high of $10.99 at 10.43am AEST.
Managing director and chief executive Anthony Heraghty said it was a "strong set of financial results with another year of record sales".
Online sales were up 44 per cent to $601 million, representing 17 per cent of total group sales. Click and collect sales were up 73 per cent to $332 million, accounting for 55 per cent of all online sales.
For the first six weeks of FY23, sales are up 17 per cent compared to a year ago, but much of Australia was in lockdown at the time.
"While current trading remains strong, the Group expects rising interest rates and higher costs of living will start to impact consumer spending in the second half and that elevated levels of demand which arose during the pandemic will begin to subside," Super Retail Group said, adding it is taking action to control costs.
It is also targeting up to 30 store openings in 2022/23, including a BCF superstore in Townsville.
The company reports 11 rCX (Rebel Customer Experience) concept stores are now open and performing strongly and it expects to convert another five of its 155 Rebel stores to the format, which offers a more immersive customer experience including gaming and a sports hub.
The retailer declared a full-franked final dividend of 43 cents per share, compared to 55 cents per share a year ago.
