The great outdoors sends Super Retail soaring

A boom in domestic tourism and outdoor recreation, plus online shopping, helps the retail group more than double its profit.

Super Retail CEO Anthony Heraghty. Picture: Jane Dempster

An “unprecedented” boom in demand for domestic holidays and outdoor recreation has sent Super Retail Group’s half-year profit soaring by more than 200 per cent, while its omni-retail channel has helped it benefit from a surge in online spending.

Total group sales increased 23 per cent to $1.78bn in the six months to December 31, with ­online sales almost doubling to $237.4m — more than 13 per cent of the sales total.

Group segment EBITDA lifted 95 per cent to $311.4m while statutory net profit surged by 201 per cent to $172.8m.

An interim dividend of 33c a share was declared.

Following the strong result, shares in the company closed up 2 per cent at $11.81.

Group CEO and managing director Anthony Heraghty said the record result was driven by an “unprecedented level of consumer demand” and the company’s ability to satisfy it through online and bricks-and-mortar channels.

“Our omni-retail capability has been instrumental in enabling the group to pivot towards shifting consumer spending habits and deliver profitable growth, underpinned by strong digital sales,” Mr Heraghty said.

He said online transaction sales had an average value 170 per cent above retail store sales, but 93 per cent of all transactions still involved a customer visiting a store in some way, with click-and-collect purchases accounting for almost half online sales.

“This is why we think a pure play digital business is a challenge,” he told The Australian.

“You need to have a mix of ­delivery and in-store fulfilment because the customer will often not want to wait for the postie to arrive.”

The company flagged a $100m capex spend for the financial year to help grow market share by investing in its omni channel capabilities over external acquisitions.

“We’ve got four core brands. They are in growing segments (and) we think there is still more work to do within the digital space; there is opportunity in our loyalty program,” Mr Heraghty said. “Focus on all that is key.”

The best-performing segment was outdoor brand BCF, or Boating, Camping Fishing, which lifted total sales 50.9 per cent to $427.7m, and online sales more than 100 per cent to $50.5m.

“BCF reported a material uplift in boating, camping and fishing sales during the period as COVID-19 restrictions eased and domestic tourism and leisure ­activity increased,” the company said. “Western Australia, Queensland and NSW were the best-performing states.”

The Rebel sports supply brand reported a 17 per cent lift in sales to $623.7m, with Queensland and NSW the best-performing states, while online sales grew by 102.1 per cent to $119.9m.

Mr Heraghty said the brand was bolstered by an initial demand for home gym equipment, followed by shoes and workout gear when the domestic lockdown lifted.

Sales at Supercheap Auto lifted 20.2 per cent to $661.9m, with WA, Queensland and South Australia the strongest states. Mr Heraghty said it benefited from the “return of the great Australian road trip”. Online sales grew by 46.1 per cent to reach $54.2m.

The only brand to see sales fall was Macpac, with revenue down 5.3 per cent to $63m due to store closures in New Zealand — although online sales grew 93.9 per cent to $128m.

Mr Heraghty said the second half of the year was strong, with like-for-like sales already up 25.2 per cent.

“We remain well positioned to benefit from positive consumer sentiment and elevated consumer demand in the domestic outdoor leisure and travel sectors,” he said.