Super Retail Group suffered a slide in interim sales and profitability

The Brisbane founder of Super Retail Group has suffered an $80m hit to his wealth after the value of his shareholding slumped almost 10 per cent following a disappointing profit result.

Super Retail CEO Anthony Heraghty, in Rebel store. Picture: Jane Dempster/The Australian.

Super Retail Group suffered a slide in both sales and profitability during the first half of the financial year, sending the company’s shares down 9 per cent Monday.

But the national chain of outdoor goods and auto parts stores reported a positive start to the second half and revealed that digital sales had soared 64 per cent to a record $389m, or nearly a quarter of all turnover.

The Brisbane-based company, which trades under the banners of Supercheap Auto, Rebel Sports, BCF and Macpac, said sales had fallen 4 per cent to $1.7bn in the half-year to December 25. Boxing Day sales figures were not included.

Statutory net profit plunged nearly 36 per cent to $110.8m as costs rose in response to pandemic and global supply chain-related pressures. Profit margins also slipped.

Investors responded by bailing out of the stock, which finished trading at $11.63, down $1.22.

Richlister Reg Rowe, who founded the company with wife Hazel in 1972 as a mail-order battery service based at his Brisbane home, still controls a 29 per cent stake. His paper loss exceeded $80m as a result of the share dive on Monday.

CEO Anthony Heraghty

Despite these headwinds, chief executive Anthony Heraghty said he was “pleased to have delivered a strong top line sales performance”.

“After Covid-19 lockdowns disrupted trade in the first quarter, we delivered a fast finish to the half, achieving a record second quarter sales result. Our omni-retail capability and execution have been key to meeting consumer demand, underpinning a record digital sales performance driven by uptake in click and collect,” Mr Heraghty said.

“We entered the second half with strong sales momentum, which has continued in the new calendar year. Looking forward, the group will continue to reinvest in the business, including digital, loyalty and network to execute our strategic priorities and grow our four core brands.”

Total sales fell in three of the group’s four main brands, with Super Cheap Auto down 6.9 per cent to $616m, Rebel Sports off by 2.9 per cent to $605m and BCF slipping 2.2 per cent to $418m.

Only Macpac saw turnover lift 4 per cent to $65m as a result of positive like-for-like sales and new store openings.

With the Omicron wave receding, Mr Heraghty hailed a 6 per cent lift in like-for-like sales across all the brands so far in the second half of the year.

He cited Rebel benefiting from back-to-school turnover, BCF seeing heightened interest in boating and camping goods and Macpac enjoying a boost in summer apparel and equipment categories.

“We have seen an encouraging uplift in sales momentum as the second half has progressed, with consumer caution starting to recede. Super Cheap Auto and BCF, in particular, have delivered strong sales with both brands benefiting from higher in-stock positions in key categories,’’ Mr Heraghty said.

“While COVID-19 continues to cause disruption to our customers, team members and trade partners, the group remains focused on executing our business strategy and investing for growth to deliver long-term value for our shareholders,”

He said $125m in new spending had been committed for store growth and improvements to loyalty and web-based capabilities.

Super Retail declared a dividend of 27 cents per share, payable on April 14. That’s down from the 33 cent payment made for the same period last year.