SRG reports profits, 'improved performance'
Super Retail Group’s first-half net profit has soared 65.7 per cent to $74.4 million, with sports and leisure divisions performing strongly.
Chief Executive Peter Birtles (pictured) says the results are built on the momentum established in the second half of the 2016 financial year.
“We continue to make good progress in the key initiatives outlined in the plan we implemented in May 2015 to lift both compound annual earnings per share growth and return on capital back above 15 per cent,” Birtles said.
“The restructuring undertaken in the 2015 and 2016 financial years is delivering a positive outcome with a much improved performance from the leisure division and the elimination of loss making businesses within the sports division,” he added.
Birtles says the group has had a solid start to the second half with each division delivering positive like-for -like sales growth.
Around 12 new stores are planned to open in the second half, confident the group would be able to deliver continued sales growth across all brands.
In the leisure division, total sales grew three per cent to $311.0 million and like-for-likes rose 5.8 per cent, reflecting the closure of Rays stores after the restructure last year.
SRG closed 36 of Ray's 53 stores and is converting the remaining 17 stores to shopping destinations for campers, hikers and adventurers.
About ten former Rays stores have been converted to BCF outlets, where like-for-like sales grew 3.6 per cent.
Earnings from leisure jumped 54 per cent to $20.6 million, helped by higher gross margins at BCF and the closure of loss making Ray's stores.
The new format Rays stores are showing promising early signs, Birtles says.
In the sports division, total sales grew 8.5 per cent to $490.5 million, with same-store sales at Rebel and Amart Sports growing six per cent, driven by stronger transactions and higher average transaction values, particularly in apparel. Earnings rose 19.5 per cent to $50.9 million.