ASX 200 rises, Flight Centre drops, Super Retail grows

The S&P/ASX 200 Index (ASX:XJO) was up 0.6% to 7,068 points. That included the Flight Centre Travel (ASX: FLT) share price falling over 4%.

| More on:
Graphic representation of a bull climbing a stock chart

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) went up by 0.6% to 7,068 points.

Here are some of the highlights from the ASX today:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price fell 4.6% after giving a trading update to investors.

Flight Centre said that it has seen record sales revenue in March after a more subdued January and February. There has been a significant uplift globally at the end of FY21's third quarter.

March was comfortably higher than the previous COVID-19 record.

The turnover was up more than $100 million higher than February. That's an increase of 32.7% month on month. It takes gross quarterly total transaction value back above $1 billion for the first time after the onset of COVID.

Flight Centre is currently expecting further growth in April. The recovery continues despite heavy restrictions in key markets.

The Australian corporate and leisure businesses and US leisure business are contributing strongly to the recent improvement.

Flight Centre said that the ending of jobkeeper means it has lost the $5 million to $7 million subsidy per month in Australia during the fourth quarter. It expects to recoup this if state borders stay open.

The ASX 200 business is continuing to target a return in profit before tax during FY22 on a month to month basis in both corporate and leisure.

It's currently expecting FY21 second half losses to be broadly in line with the first half.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price went up 0.7% today in reaction to the trading update.

Super Retail has continued to see strong growth. It gave a trading update for the first 44 weeks of FY21.

Supercheap Auto sales were up 21%, Rebel sales were up 20%, BCF sales were up 59%, Macpac sales were up 17%. Overall sales went up by 28%.

Anthony Heraghty, the CEO of Super Retail, said:

Given the continued strength of customer demand, the group has maintained relatively subdued levels of promotional activity in the second half. As a result, the gross margin improvement which the group delivered in the first half has been maintained in the second half.

The group is in a well-stocked inventory position, which has benefited from the arrival of orders made in the first half. Higher shipping costs in the second half have impacted inventory costs but these have been partly offset by favourable currency movements.

As previously advised, second half operating expenses will reflect catch-up up projects deferred during COVID-19 and increased re-investment in the business.

SEEK Limited (ASX: SEK)

The SEEK share price went up around 2% after giving an update.

The employment business said that it announced that all conditions had been completed for the Zhaopin transaction. This will reduce the Zhaopin stake from 61.1% to 23.5%. Around $500 million of the total anticipated gross proceeds (almost $700 million) were received in April 2021.

SEEK said that it intends to pay a dividend of 20 cents per share. It's now operating well within its pre-existing borrower group covenant limits including payment of the dividend.

Based on the transaction value, the ASX 200 share's 23.5% ownership of Zhaopin is valued at $515 million.

SEEK has changed its FY21 guidance, excluding significant items. Revenue will be in the order of almost $1.6 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) will be in the order of $480 million. Seek's share of net profit losses for its early stage ventures (ESV) will be in the order of $50 million.

The reported net profit is expected to be in the order of $140 million.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

3 of the best ASX 200 shares to buy in 2025

Let's see why analysts at Bell Potter are bullish on these shares next year.

Read more »

People of different ethnicities in a room taking a big selfie, symbolising diversification.
Opinions

Want diversification? Get it instantly with these ASX 200 shares

Some businesses offer a lot more diversification than others.

Read more »

A happy man and woman on a computer at Christmas, indicating a positive trend for retail shares.
Opinions

2 ASX 200 shares I'd want to receive as a present today

Merry Christmas! Are there any stocks under your tree?

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Avita Medical, GenusPlus, Mesoblast, and Polynovo shares are storming higher

These shares are having a better day than most today. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Charter Hall Retail, DroneShield, FBR, and St Barbara shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

2 of the best ASX shares to buy in 2025

Bell Potter is feeling bullish on these shares as the new year approaches.

Read more »

A happy man and woman on a computer at Christmas, indicating a positive trend for retail shares.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Will the market give investors a little Christmas present today?

Read more »