The retailer behind Supercheap Auto and the Rebel sports brand has unveiled a solid rise in quarterly sales.
Super Retail Group's auto division, which includes Supercheap Auto and Auto Trade Direct, lifted like-for-like sales four per cent in the 16 weeks to October 18.
Sales at the group's sports division, which includes Amart and Rebel, also lifted three per cent.
But its leisure business, which includes Ray's Outdoors and the BCF chain of boating and fishing stores, continued to lag with sales falling three per cent.
The business has been struggling in part because of falling sales in regional areas.
Shareholders brushed off the sales slide and pushed Super Retail's shares up 25.5 cents, or 3.3 per cent, to $7.915.
However the stock remains well below it's peak for the year of $12.95, hit in January.
Managing director Peter Birtles told shareholders during the company's annual general meeting on Wednesday that the results were in line with expectations.
"As forecast, the leisure division continues to be impacted by new store cannibalisation and weak trading conditions in mining and regional areas - this impact is expected to reduce in the second half of the financial year," he said.
The group's gross margins were behind what they were during the same time last financial year but are expected to recover in the second half.
"We are expecting a recovery is gross margins in the second half and to be in line with the prior period over the full year," Mr Birtles said.
Meanwhile, the retailer has earmarked $90 million to be spent on new stores and refurbishments.
It expects to open about 10 new stores for its auto division and refurbish another 45 outlets.
Another four stores are planned for the leisure division, while two will close and three BCF superstores will be refurbished.
Fourteen stores will be added to the sports division, with the focus on expanding its Amart chain.
Five sports stores will close and 15 will be refurbished.
During the AGM, shareholders questioned why two members of the board did not own shares in the company.
"I do think it's pretty poor that someone who's on the board doesn't think it's worth investing in," the Australian Shareholders' Association representative Michael Waterhouse said.
Chairman Robert Wright said it was not Super Retail's policy to require board members to have shares in the company, but added that they all contributed via their "skill set."
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