Insights

Super Retail (ASX:SUL) share price climbs 3% on trading update

Super Retail shares are surging despite a pullback in year-to-date sales.
The post Super Retail (ASX:SUL) share price climbs 3% on trading update appeared first on The Motley Fool Australia. –

The Super Retail Group Ltd (ASX: SUL) share price is rallying higher after the company released a trading update for the first 16 weeks of FY22.

At the time of writing, the Super Retail share price is up 3.34% trading at $13.46.

How did Super Retail fare during this trading period?

COVID-19 lockdowns across key markets of New South Wales, Victoria, ACT and New Zealand have severely impacted trading, more so than the previous corresponding period.

Super Retail reported year to date like-for-like sales declines across the board for the first 16 weeks for FY22, with Supercheap Auto sales sinking 13%, Rebel Sports falling 10%, BCF down 12% and Macpac down 10%.

Overall group sales declined 12%.

The company advised that excluding the major impacted markets of New South Wales and Victoria, group like-for-like sales in the first 16 weeks of FY22 was 6% lower than FY21 and 27% higher than FY20.

Online sales channel performance was encouraging, increasing 96% and representing 30% of overall group sales, year-to-date.

Click and collect sales also grew by 163%, outpacing home delivery and representing 59% of overall online sales.

So far in FY22, the company has maintained gross margin improvements achieved in FY21.

However, the trading update warned that ongoing freight and logistics costs associated with elevated levels of inventory could weigh on future gross margins.

Looking ahead, management said it was confident about the key cyber and Christmas trading period, with a “fortified inventory position across all four of its core brands”.

Management reiterated that the group was undertaking significant investment in its customer loyalty and data and analytics capability. The multi-year program is expected to have an impact on operating expenses in the first half and beyond.

Management commentary

Super Retail Group managing director and CEO Anthony Heraghty commented on the results, saying:

In FY22 year to date, we have maintained steady trading momentum in non-COVID impacted regions and we are confident that we will see a rebound in sales as lockdowns end and stores re-open.

As COVID-19 restrictions ease, we are looking forward to helping our customers celebrate by providing them with all of the products they need to resume travelling, playing sport and enjoying the great outdoors.

The group has a strong inventory position and is well placed to take advantage of the expected uplift in consumer demand in the auto, leisure and outdoor categories over the summer holiday period.

Super Retail share price snapshot

The Super Retail share price has been a solid performer so far in 2021, up 27.8% year-to-date.

Today’s lift puts it within arm’s reach of August all-time highs of $13.73.

The post Super Retail (ASX:SUL) share price climbs 3% on trading update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Super Retail Group right now?

Before you consider Super Retail Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Super Retail Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Is the Super Retail (ASX:SUL) dividend yield really 11%?

Here are 2 ASX dividend shares analysts rate highly

Here are the top 10 ASX shares today

Which ASX 300 shares are the biggest winners and losers on Thursday?

Why Collins Foods, Pilbara Minerals, Sezzle, & Super Retail are pushing higher

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!