Super Retail Group up +13% after hitting $4.1B in sales, but margins dented

Super Retail Group (ASX:SUL) has charged +13% in intraday trade after wrapping up FY25 with a record $4.1 billion in sales, up 4.5%, proving even in a tough retail environment, shoppers are still spending – albeit carefully.

Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.

Despite the top-line growth, however, Super Retail’s profits didn’t quite keep pace. Group profit before tax fell 4% to $329 million, statutory net profit after tax dropped 8% to $222M, and NPAT came in at $232M.

“Another year of record sales despite a challenging retail environment,” declared CEO Anthony Heraghty after the report. He also pointed to progress in omni-retail capabilities, the opening of a new distribution centre in Victoria, and improved team safety, noting injury rates had improved year on year.

The retail giant, which owns Supercheap Auto, Rebel, BCF, and Macpac, reported that segment EBIT stayed flat at $400M. Margins were squeezed, though, with gross margin slipping 50 basis points to 45.6%; mostly due to Rebel stock loss.

Still, there were bright spots. Revenue picked up speed in the second half across all four brands, with BCF leading the charge in that sector.

Online sales hit $524M, up 8%, and now make up 13% of the total business. Click & Collect was a big driver, accounting for nearly half of all digital sales.

The group also kept growing its national footprint, opening 31 new stores and closing eight. Its loyalty program surged too, gaining a million new members to hit 12.5 million, who now make up 79% of all sales.

Super Retail investors didn’t miss out either. The board declared a fully franked final dividend of 34 cents per share, plus a special dividend of 30 cents, bringing total shareholder returns for FY25 to 96 cents.

SUL has been up 13% at $18.72 in Thursday’s afternoon trade.

Join the discussion: See what HotCopper users are saying about Super Retail Group Ltd and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.