Super Retail Group has revealed that half-year sales for the company reached $1.3 billion for the HY18 period, an increase of 2.2% on a total and like for like (LFL) basis
Despite the growth, the group’s segment earnings before interest and tax (EBIT) of $113.6 million showed a decline of 1.4%.
Auto retailing and sports retailing segments delivered growth of 3.9% and 1.6% EBIT growth respectively;
The company's leisure segment EBIT of $4.2 million was lower than the prior comparative period.
Super Retail Group MD and CEO Peter Birtles said he was pleased to report a solid set of overall results for the group at a time in which the retail industry is going through unprecedented change.
“We have been particularly pleased that our focus on working capital efficiency has resulted in strong operating cash flow performance, a reduction in net debt and a significant increase in post-tax return on capital.
“One of our key long-term goals is to generate return on capital at 15% or higher, and we are now very close to achieving that target.
“We are encouraged that over the first half of the financial year we have increased our overall market share against our key competitors and markedly increased our share of the digital market in each one of the three markets in which we operate.
“We have generated strong growth in total customer transactions across all channels in each of our three major businesses.”
As part of the announcements, Super Retail also revealed the acquisition of New Zealand-based outdoor adventure and apparel retailer Macpac.
The deal totalled $AUD 135 million, with the group acquiring the entire 54 store network across ANZ.
Super Retail's own outdoor brand, Rays, will be consolidated alongside Macpac as part of the deal.
Birtles said the acquisition of Macpac and the acceleration of the adventure outdoors retailing strategy is consistent with the group’s ongoing retail strategy.
“The integration of the business with Rays provides an opportunity to position Macpac as the leading outdoor adventure specialist across Australia and New Zealand providing a much broader range of quality products, information and services than any other retail business."
The company's sport retailing sector saw strong growth over the HY2018 period, completing the conversion of 68 Amart Sports stores to the Rebel brand.
Total sales grew by 2.7% to $503.8 million with like for like sales growth of 1.1%. The business generated strong LFL growth in apparel and solid growth in footwear while equipment was flat on the prior comparative period.
Digital sales were 174% higher than the prior comparative period as the business introduced ‘click and collect’ in late October to coincide with the conversion of the former Amart Sports stores.
The division’s share of customer spending in sports retailers grew by 50 basis points. EBIT increased by 1.6% to $51.7 million.