Super Retail Group shares spike on mixed results

Super Retail Group shares spike on mixed results

Shares in Super Retail Group (ASX: SUL) have jumped 8 per cent following a trading update which has revealed a mixed bag of results across its three divisions.

Like-for-like sales at Super Cheap Auto grew 4.4 per cent over the past 17 weeks, while sales at sporting brand Rebel also grew 2.2 per cent.

BCF became a sinker for the group as the outdoor lifestyle brand's total sales fell by 0.4 per cent.

CEO Peter Birtles says rough weather conditions are partly to blame for BCF's struggles, however he is optimistic that the group's recent acquisition of Macpac will put the wind back in its sails.

"BCF's sales performance has been impacted by differing weather conditions across the country during February and March," says Birtles.

"We continue to expect that we will hold full year Group EBIT margin in line with the prior comparative period before recognising the contribution from the recently acquired Macpac business."

Super Retail Group acquired Macpac back in early April which is expected to contribute around $5 million to the group's FY18 EBIT balance.

The group also continues to integrate the former Amart Sports brand into Rebel and says it is on track to reap benefits from the transition prior to 2019.

"Rebel is building momentum as it integrates the former Amart Sports stores and optimises the ranging and inventory across all stores," says Birtles.

"The business remains on track to fully deliver the synergy benefits from integrating the Amart Sports business into Rebel in the 2019 financial year."

SUL stock is currently trading at $7.56 at the time of writing (2:28pm AEST).

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