• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Super Retail Group [ASX:SUL] Shares Jump on Record $2 Billion First-Half Sales

Like 0

By Charlie Ormond, Monday, 15 January 2024

Super Retail Group continues to showcase its resilience as it expects record sales for 1H24. However, costs continue to challenge the bottom line.

Super Retail Group [ASX:SUL], the Australian retail powerhouse behind brands Supercheap Auto, Rebel, BCF, and Macpac, is anticipating strong first-half sales despite inflationary headwinds impacting costs and consumer spending.

In a trading update today, the company revealed record first-half revenue of $2 billion. Final results are slated for release on 22 February, but first-half profit before tax is expected at $200–203 million.

Shares in SUL have jumped by 6% after the update this morning. Shares are trading at $16.71 per share as the retailer maintains its position as a beacon of resilience.

2023 was dubbed the ‘perfect storm’ for retailers, with three consecutive quarters of declining spending.

While Australia avoided recession, many retailers face the hard choice of forgoing expansion or reducing headcounts.

SUL’s share price has managed to avoid the worst of the fallout, up 46% for the past 12 months, outperforming the sector by over 35%.

ASX:SUL news

Source: TradingView

Super Retail Navigates Cost Pressures

Super Retail Group managed to secure sales growth despite growing economic anxieties, showcasing the enduring appeal of its value brand portfolio.

BCF saw the biggest gains of its four major brands, with an 8% increase in first-half sales compared to the prior corresponding period.

SuperCheap Auto and Macpac saw a 4% increase in sales, while Rebel’s sales fell around -1%.

SUL launched Rebel Sport’s new customer loyalty program in October, hoping to shore up its sales.

SUL says this may impact profits in its final February results but has seen positive engagement. ‘More than 40% of rebel’s 3.9 million active club members have already earned points by shopping at rebel,’ it said today.

It appears cost-conscious consumers have stuck with value brands and favoured sales.

‘The group has traded well over the cyber sales and Christmas holiday trading period,’ acknowledged CEO Anthony Heraghty.

‘We maintained positive like-for-like sales growth in the first half, however, cost of living pressures on the consumer did lead to a more constrained retail trading environment at the end of the second quarter.’

It seems inflation wasn’t without its bite for the retailer.

Increased costs driven by rising wages, rent, and electricity ate into margins. Rebel Sport felt this the most due to its specific lease arrangements and higher staffing needs.

Heraghty highlighted that despite the cost challenges, ‘Gross margin in H1 FY24 is expected to be higher than H1 FY23’.

The company has started several initiatives to address cost pressures. The biggest of which is building a new automated distribution centre in VIC.

The facility cost around $80 million and will open in 2026 to serve Super Cheap Auto stores.

Outlook for Super Retail Group

The upcoming full financial results will shed further light on how each brand navigated the first half. This, along with Super Retail Group’s outlook for the remainder of the financial year, will likely push the next major share price movement.

Investors will be particularly interested in company plans to address the impact of rising costs while continuing to attract budget-conscious consumers.

Rebel Sport’s results remain a slight but noticeable stain on the preliminary results. Investors will keenly watch the impacts of the customer program, which will cost the company approximately $8 million for FY24 in deferred revenue from credits.

Rebel has turned around its sales in the past with smart initiatives such as its Matilda’s shirts and expanding its women’s apparel range.

Working in SUL’s favour is improving consumer sentiment. The latest data from the ANZ-RoyMorgan Consumer Confidence Index shows an 11-month high.

roy morgan consumer research

Source: ANZ-Roy Morgan

The lift in sentiment should hopefully translate into more robust retail sales. This could come from steadily rising wages, but the important factor ahead are future rate cuts.

The RBA has maintained that rate cuts are coming later in the year. Whenever they come, this easing could open the door for more discretionary spending.

Overall, Super Retail Group’s first-half performance paints a fairly optimistic picture.

While inflation presents challenges, the company’s diverse portfolio, positive sales growth, and strategic cost management suggest it remains on track for a promising financial year.

Regards,

Charlie Ormond

For Fat Tail Daily

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Charlie Ormond

With more than a decade of fintech experience, including stretches in critical roles at budding start-ups and tech titans like Microsoft, Charles is squarely focused on investment opportunities in emerging sectors. Interestingly, his academic foundation in zoology provides an unexpected edge! He applies his scientific training with his analytical mindset to figure out tomorrow’s winners and losers. While traditional institutions stick with ‘safe’ stocks, Charles goes straight for seismic shifts in crypto and AI. He’s an early adopter of both technologies.

Now he’s on a mission to empower everyday investors. He decodes groundbreaking developments in technology stocks before they grab mainstream attention. So, if you seek an unconventional perspective to help capitalise on what’s next in fintech, look no further.

Charlie’s Premium Subscriptions

Publication logo
Alpha Tech Trader
Publication logo
James Altucher’s Early-Stage Crypto Investor Australia

Latest Articles

  • OpenAI and Microsoft Divorce?: Why this could be good for you
    By Charlie Ormond

    While breakups are rarely pretty, this one might actually benefit investors willing to look beyond the drama.

  • Three Lithium Stocks in the Buy Zone
    By Murray Dawes

    Lithium stocks jumped this week, so Murray and Callum discuss whether this could be the beginning of the second boom in lithium stocks. They also discuss a fund manager that is recovering and looking cheap

  • Every Australian Investor Has a Stake in Mining
    By James Cooper

    With its deep pool of retirement capital, Australia is on track to become the world’s primary destination for resource markets.

Primary Sidebar

Latest Articles

  • OpenAI and Microsoft Divorce?: Why this could be good for you
  • Three Lithium Stocks in the Buy Zone
  • Every Australian Investor Has a Stake in Mining
  • The next wave of AI winners
  • Could the US People Repudiate the National Debt?

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988