Super Retail cashes in on cold July

The Super Retail Group says like-for-like sales are up largely thanks to a cold July.

The late winter weather has been a double-edged sword for the retailer behind the Rebel and Ray's Outdoor chains.

Super Retail Group suffered a sales dip in June amid warmer than usual winter temperatures, which and forced the retailer to cut its profit forecast.

But when the cold weather finally hit in July, sales began to climb.

Managing director Peter Birtles says in the first six weeks of 2014/15, like-for-like sales are just ahead of the same time a year ago.

"The apparel sales were strong and that may have benefited from the colder weather in July," he said.

"We saw not a strong June for apparel but July was strong which is probably weather related benefits we're seeing there."

The group's profit rose 5.6 per cent to $108.4 million in the 12 months to June 28, in line with forecasts.

Its auto retailing division Supercheap Auto was behind the solid result, contributing 10 per cent growth in earnings.

The group's sports and leisure retail divisions were slight drags, posting small falls in underlying profits.

Mr Birtles said the company expects modest sales growth in the first half of the new financial year, and bigger gains in the second half.

"We expect like-for-like growth in the first half of the year to be modest given the strong growth in the first half of the prior year, and the softness in consumer confidence," he said.

"But we expect higher second half growth as benefits from operating improvements are delivered and as we cycle less demanding comparatives."

Mr Birtles said earnings margins were expected to grow across the group through a combination of sourcing, ranging, promotions and cost management initiatives.

The group also owns brands such as BCF Boating, Amart Sports and recently acquired Workout World.

Super Retail shares gained 46 cents, or 5.3 per cent, to $9.18.

SUPER RETAIL GROWS DESPITE WEAK CONSUMER CONFIDENCE

* Net profit of $108.4m, up 5.6 pct from $102.7m loss in 2012/13

* Revenue of $2.11b, up 4.6 pct from $2.02b

* Final dividend 21.5 cents, up from 19 cents


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