This ASX 200 retail share is booming 10% on an ‘outstanding first-half result’

The share price of S&P/ASX 200 Index (ASX: XJO) retail giant Super Retail Group Ltd (ASX: SUL) is soaring after the company provided a glimpse into its record first half.

Right now, the Super Retail share price is 9.51% higher at $12.55.

Super Retail share price soars on record first-half sales

Here are the key expectations the company has for its first half earnings, to be released next month:

• $1.96 billion of revenue
• Between $212 million and $218 million of normalised profit before tax
• Sales to increase 11% year on year on a like-for-like basis – inking a first-half record
• Supercheap Auto leading the way, expected to bring in $728 million in revenue

Super Retail ended the period with no drawn bank debt and a positive cash position.

What else happened in the first half?

The ASX 200 retailer delivered record first-half sales in financial year 2023 (FY23).

Though it notes, unlike FY22, Boxing Day fell in the first half of FY23. As such, it adjusted its sales to reflect like-for-like growth.

Over the six months ended 31 December, Supercheap Auto’s sales grew 15% year on year, while those of Rebel lifted 11%. Meanwhile, BCF’s sales fell 2% and Macpac’s rose a whopping 54%.

Its inventory is also being well managed, the company reports. Its inventory balance ended the half around $30 million lower than it did the prior comparable period.

What did management say?

Super Retail managing director and CEO Anthony Heraghty commented on the announcement driving the ASX 200 share higher today, saying:

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.

What’s next?

The coming month with likely have fans of the company on their toes as they wait for its audited first-half earnings, to be released on 16 February.

It also noted its inventory balance is expected to continue to normalise going forward as purchase orders are adjusted to reflect current stock levels.

Super Retail share price outperforms the ASX 200

The Super Retail share price has outperformed the market over the last 12 months despite the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) falling.

The ASX 200 has fallen around 0.3% since this time last year while the consumer discretionary sector has slumped 13.5%.

Simultaneously, the Super Retail share price has gained 1.6%.

The post This ASX 200 retail share is booming 10% on an ‘outstanding first-half result’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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