AAP Finance

Super Retail sales rise but margin dips

By AAP Newswire

The owner of Rebel Sport and Supercheap Auto says like-for-like sales have increased 3.2 per cent so far this financial year, but promotions to attract cautious consumers have hit margins.

Super Retail Group said on Tuesday that Rebel Sport, Supercheap Auto and BCF have all shown strong sales growth over the first 16 weeks of the financial year, albeit not without sacrifices.

"In response to a cautious consumer, we have activated a higher level of promotional activity across the business, which has successfully generated top line growth but adversely impacted margin," managing director and chief executive Anthony Heraghty said.

Macpac's comparable sales were 2.1 per cent lower, but Super Retail said that was due to the camping brand having enjoyed a strong prior corresponding period.

"We aim to strike the right balance between sales and margin," Mr Heraghty said.

"We remain confident that Macpac will continue to deliver shareholder value as we open stores, grow digital sales and increase our brand awareness in the Australian market."

Shares in Super Retail dropped 4.4 per cent to $9.14 by 1028 AEDT, but were still 30 per cent higher for the calendar year.