Changes are happening - please bear with us while we update our site.

Join Free
Log in

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Join Free
Log in

Reject Shop Ltd (ASX:TRS) Share Price Hit 40% On Trading Update

The share price of Reject Shop Ltd (ASX: TRS) has crashed 40% in early trade after releasing a pre-AGM trading update.
Picture of Jaz Harrison

Jaz Harrison

Jaz is a Staff Writer for Rask. She is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.
More analysis

The share price of Reject Shop Ltd (ASX: TRS) fell 40% in early trade on Wednesday after releasing a pre-AGM trading update.

Reject Shop is a discount retailer that sells a variety of items including food & drink, health & beauty and stationery.

The trading update:

Reject Shop revealed that comparable sales for the first 15 weeks of the 2019 financial year are down 2.4%. Over the latest 8 weeks comparable sales are actually down 3.9% despite a large marketing effort.

The retailer said that current conditions represented an extremely weak retail environment.

Reject Shop has downgraded its profit guidance for the first half of FY19 to between $10 million to $11 million. This compares to a previous prediction of $17.7 million first half profit based on comparable sales growth of just 1%.

Managing Director of Reject Shop Ross Sudano said: “The continuing absence of real wage growth and increases in the cost of many basic expenses (including mortgage rates) ensures that competition for the discretionary spend of consumers remains high.”

Amazon Australia just launched its pantry food & drink offering, which means there is another competitor for Reject Shop in the non-fresh food category.

Slow News Day? Here’s A Great Story…

The Rask Group’s Australian Investors Podcast is fast becoming Australia’s #1 podcast for serious investors. It provides unique insights from Australia’s best investors, entrepreneurs, authors and financial thinkers. Download the latest episode free on iTunes, Castbox, YouTube or wherever you choose to listen.

*As voted by us

itunessoundcloudcastboxdownload

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Access all reports now

Unsubscribe anytime. Read our Terms, Financial Services Guide, Privacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Latest stories

Free passive income report
Skip to content