Super Retail Group (SRG) has slashed its expectations for the full fiscal year, following another round of lacklustre results.
SRG, responsible for sports apparel and accessories retailer Rebel Sport, said sales across the group have been lower than expected over the last six weeks.
It is expected that the recent subdued sales performance will continue over the remaining two weeks of the financial year.
As a result, SRG group managing director Peter Birtles said that group full year net profit after tax is expected to be between $107 million and $109 million.
This represents an increase of approximately five per cent in reported earnings over the prior year.
Birtles added that it was “extremely disappointing” to further moderate profit expectations for the full year.
However, he confirmed that the group was confident that this revised profit forecast was the result of external factors as opposed to any deterioration in internal execution.
Apparel sales in the group’s leisure and sports divisions in particular have been lower than the prior year, reflecting the warmer weather this year in autumn and early winter.
The group said the results also reflect the significant downturn in consumer confidence since the Federal budget, particularly across the lower to mid income families who represent the group’s core customers.
The group said it remains committed to its long term growth targets and its plans to open new stores, refurbish existing stores and to continue to invest in developing its supply chain, private brand, sourcing, multi channel and customer relationship capabilities.
