- The Reject Shop (TRS) has been further impacted by COVID-19 in the second half of FY21
- The virus has continued to affect sales, with January and February figures impacted by the Brisbane, Perth and Victoria lockdowns, as well as the changing border restrictions
- Additionally, stores in CBD locations and large shopping centres continue to be negatively impacted by reduced foot traffic
- Due to these factors, the discount retailer is now expecting its full-year sales for the 2021 financial year to be in the range of $776 million and $778 million, with earnings before interest and tax to be between $8 million and $10 million
- On the market this afternoon, The Reject Shop is down 10.9 per cent and is trading at $5.63 per share
COVID-19 has impacted The Reject Shop’s (TRS) second half more than originally forecasted.
The virus has continued to affect sales, with January and February figures hit by the Brisbane, Perth and Victoria lockdowns as well as the changing border restrictions.
Additionally, stores in CBD locations and large shopping centres continue to be negatively impacted by reduced foot traffic.
Due to these factors, the discount retailer is now expecting its full-year sales for the 2021 financial year to be in the range of $776 million and $778 million, with earnings before interest and tax to be between $8 million and $10 million.
Over the past 48 weeks, preliminary and unaudited comparable sales were down 1.4 per cent compared with this time last year.
Notably, trading conditions remain unpredictable in June, particularly in Melbourne.
The Reject Shop is continuing to look for new locations, particularly in regional Australia. The company is aiming to open a further two stores in June.
New non-executive director
Reject Shop has also appointed Margaret Zabel as an independent non-executive director to its board, effective from today.
Margaret has more than 20 years of experience working across major companies and brands in fast moving consumer goods, food, technology and communications industries.
Previously she has worked as National Marketing Director for Lion Nathan, Vice President of Marketing for McDonald’s Australia and CEO of Advertising Council Australia.
On the market this afternoon, The Reject Shop is down 10.9 per cent and is trading at $5.63 per share at 1:20 pm AEST.