The Super Retail Group Ltd (ASX: SUL) share price is in focus after announcing sales growth in the first half of FY23.
This is the retail business that owns Supercheap Auto, Rebel, BCF and Macpac.
Super Retail HY23 sales
The company said it’s expecting to report first-half revenue of $1.96 billion, with first half normalised profit before tax (PBT) of between $212 million to $218 million.
Boxing Day fell in the second half of FY22 and first half of FY23. In FY22, Boxing Day contributed approximately $27 million of sales and $7 million of PBT in FY23.
HY23 total sales grew 15% – Supercheap Auto sales rose 18%, Rebel sales increased 13%, BCF sales grew by 7% and Macpac sales 55%. Total like for like sales grew by 11%.
Super Retail said that group inventory is being well managed. Its total inventory balance at the end of the first half of FY23 is approximately $30 million than at the end of the first half of FY22. Over that same period, inventory units cover has decreased by approximately one month.
The ASX retail share said that it expects the inventory balance to continue to normalise during the second half as purchase orders are adjusted to reflect current stock levels.
It had no bank debt, and a positive cash position, at the end of the first half.
Management commentary
The group managing director and CEO Anthony Heraghty said:
I am pleased to report that the group has delivered an outstanding first half result. All four core brands traded strongly over the peak cyber sales and Christmas holiday trading period as customers embraced the festive season, contributing to a record first half sales performance. Effective and targeted promotions and a disciplined approach to cost management has ensured that this top-line growth has translated into strong first half earnings. I would like to thank all our team members, whose commitment to our loyal customers and tireless efforts have helped to deliver a positive outcome for the business.
Final thoughts on the Super Retail share price
The ASX retailer was down heavily by mid-June, but it has recovered significantly since then. It’s up another 5% this morning as investors take in these positive numbers.
I thought ASX retail shares were looking like opportunities a few months ago, but there isn’t much negativity in the share price any more, so I’d hold off on buying and see if the value looks better in the next few months.
