The Super Retail Group Ltd (ASX: SUL) share price is up more than 5% after releasing a trading update.
Super Retail Group is a retail conglomerate that traces its history back to the 1970s, it’s now one of the biggest in the country. It operates a number of recognisable retail brands including BCF Boating Camping Fishing, Macpac, Rebel, and Supercheap Auto. It’s headquartered in Brisbane and has over 12,000 employees in Australia, New Zealand and China.
Why The Super Retail Share Price Is Rising
Super Retail has provided a trading update to 27 April 2019 showing that the Super Retail Group achieved 4.3% like for like (LFL) sales growth in the first 17 weeks of the second half of FY19.
Looking at the individual businesses for the second half of FY19, Supercheap Auto has achieved LFL sales growth of 4.2%, Rebel’s LFL growth was 4%, BCF’s LFL growth was 5.3% and Macpac’s LFL growth was 2%.
When added to the first half’s figures, the Super Retail Group has achieved total sales growth of 4.4%, with like for like sales growth of 3.3%, so growth has picked up in the second half.
Super Retail said that the auto and sports businesses continue to perform in line with expectations, while BCF maintained its top-line growth trajectory despite ongoing pressure on margins. Meanwhile, Macpac is running at full-year expectations.
Managing Director and CEO of Super Retail Anthony Heraghty said: “Our trading performance is encouraging in a tough environment and confirms the underlying strength of our business and our brands.
Our extensive network of stores, sector-leading brands, loyal customer base and expanding e-commerce capability form a powerful combination that sets us apart from existing competitors and new entrants to the retail sector in Australia and New Zealand.”
Time to buy Super Retail shares?
This seems like a pleasing update from the retailer, considering what the numbers were showing a few months ago. Maybe things aren’t looking so bad in Australia?
However, retail is a very competitive space and I think there are better industries to consider for the long term where the profit margin pressures are a lot smaller, such as with the two ASX growth shares in the free report below.
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