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Posted by: Sportslink on 08/30/2017

SRG profits, and costs of Amart merger

SRG profits, and costs of Amart merger Super Retail Group has announced an after-tax   profit of more than $100million for the 2017 FY, noting costs of the sports merger at $34 million.

Announced in late July, the merging of Amart Sports into Rebel is to be complete by October 31, in time for Christmas trading.

In his announcement to the ASX on Friday, chief executive Peter Birtles reported that  this was “a quality result for the 2017 financial year that reflects strong underlying performance across all three of the Group’s divisions, the benefits of transformation initiatives in the Leisure and Sports Divisions and the investment in the Group’s omni- retail capabilities.

“It is particularly pleasing that we were able to maintain the positive momentum of the Group through the second half of the year despite the softer consumer environment .”

The third division is the Super Cheap Auto chain.

“All three divisions generated an increase in EBIT margins driven by solid like for like sales growth, improvement in gross margin and control of operating costs.

“The transformation initiatives undertaken during the last two years have contributed to the strong results, with the significant improvement in performance in the Leisure Division and the elimination of losses in the Infinite Retail business in the Sports Division.

“We continue to see large increases in the number of customers interacting with our brands through our digital channels. This is not only generating significant growth in digital sales, particularly through click-and-collect, but is also helping our customers make their buying decisions before coming into store to complete their purchases,” managing director Birtles reports.

The Leisure retailing Division has enjoyed a more successful year, with the BCF business benefiting from the transformation initiatives undertaken in 2016 and 2017.

Thirty eight Ray’s Outdoors stores were closed with 12 transferred to BCF.

The remaining 15 Ray’s Outdoors stores are being converted to the new Rays brand. Fishing, camping and apparel categories delivered strong growth, he reported.

In addition to the 12 stores converted from Ray’s Outdoors, four new stores were opened and one store was closed, resulting in 135 BCF stores at the end of the year.

Total sales for the Sports Division grew 4.3 per cent to $949.2 million, with 4.4 per cent like for like sales growth driven by average transaction value growth.

Digital sales increased by 73 per cent on the previous corresponding period, he reported.

Sales growth was strong in kids and men’s apparel, equipment and accessories while “footwear and football boots was more subdued.”

Nine new stores were opened and four stores were closed, resulting in 166 total at year end.

Now focussing on one single core brand within its Sports Division, the network of Amart Sports stores will be converted into new Rebel stores by November 2017, expanding the Rebel brand’s national footprint to almost 160 stores, he reported.

Super Retail Group has had a solid start to the new financial year – like for like sales growth has been circa seven per cent in Leisure retailing and circa two per cent in Sports retailing for the first seven weeks of the new financial year, Birtles reported to the ASX.