Solid start for new year at Super Retail Group (ASX:SUL) despite fall in profits

Retailing group Super Retail (ASX:SUL) has reported a 20 per cent slide in profit for the full year after repayments costs related to the company's $62 million underpayment scandal continue to drag on the business.

However the company has experienced a bumper fourth quarter with 27.2 per cent growth for group like-for-like sales in May and June, reflecting pent-up demand for domestic travel, leisure and outdoor activities.

Positive trading momentum across all four brands has continued in the first seven weeks of FY21 with Group like-for-like sales growth of 32.0 per cent and gross margin favourable to the prior corresponding period.

Group online sales increased by 44.4 per cent to $290.5 million, representing 10 per cent of Group sales. Click & Collect represented 43 per cent of Group online sales.
However, more than $50m in one-off costs cut into profit and prompted the retailer to slash its final dividend by around one third.

The company will payout 19.5 cents per share down from 28.5 cents per share, and payable on October 2.

Shares in Super Retail (ASX:SUL) are trading 0.57 per cent higher at $10.57
 
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Source: Finance News Network