Super Retail Group's first-half profit fell 0.7 per cent to $71.7 million after compensation to underpaid retail managers more than offset the Rebel Sport owner's increased revenue.
Revenue for the six months to December 29 rose 6.0 per cent to $1.4 billion, but Super Retail Group - which also owns Rays and Supercheap Auto - said net profit slipped on the impairments it flagged this week.
The company said a review of employment arrangements had showed $32 million in overtime hours had not been paid in accordance with the General Retail Industry Award over the past six years, with interest-related compensation adding another $11 million in pre-tax costs.
The discovery has hastened the departure of group managing director and chief executive Peter Birtles, who will now step down effective February 20, a month earlier than expected.
Mr Birtles said he deeply regretted the situation and stressed that the company was committed to remediation.
The group also said it recorded a net loss of $600,000 after selling its shares in private land sharing website Youcamp in December, more than three years after it invested in the Australian digital start-up.
Super Retail shares were trading 0.13 per cent higher at $7.68 at 1140 AEDT on Thursday but down from a two-year high of $10.00 in August.
Super Retail will pay a fully franked interim dividend of 21.5 cents, unchanged from last year.
SUPER RETAIL GROUP'S HALF-YEAR RESULTS
* Net profit down 0.7pct to $71.7m
* Revenue up 6pct to $1.4b
* Fully franked interim dividend steady at 21.5 cents
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