Super Retail (ASX: SUL) share price climbs on FY21 results

Why this Aussie retail share is on the move in early trade.

| More on:
Afterpay share price a happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.

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 Super Retail Group Ltd (ASX: SUL) share price is climbing higher this morning following the company's latest full-year results release.

In opening trade today, the Super Retail share price is up 1.8%, trading at $13.3.

Super Retail share price jumps on earnings, dividend boost

The Aussie retailer provided an update on performance for the year ended 30 June 2021 (FY21) including the below highlights:

  • Record full-year result with sales up 22% to $3.45 billion
  • Segment earnings before interest and tax (EBIT) up 80% to $476.8 million
  • Segment normalised profit before tax (PBT) up 108% to $435.8 million
  • Normalised net profit after tax (NPAT) up 107% to $306.8 million

The Super Retail share price is one to watch today after also announcing a fully franked final dividend of 55 cents per share.

That brings the full-year dividend to 88 cents per share compared to just 19.5 cents in FY20.

What happened in FY21 for Super Retail?

Online sales surged 43% to $415.6 million with Super Retail touting its 'omni-retail strategy' as key to withstanding COVID-19 restrictions.

All four of Super Retail's major brands (Supercheap Auto, Rebel, BCF and Macpac) reported strong like-for-like (LFL) sales growth during the year. BCF led the way with 48.0% LFL growth, with Rebel (17.5%), Supercheap Auto (16.4%) and Macpac (14.2%) all hitting double digits.

The Super Retail share price has climbed higher following the result which highlighted its strong balance sheet as well as earnings. Super Retail has no bank debt with $600 million in undrawn debt facilities waiting in the wings.

Super Retail also reported a strengthened inventory position heading into FY22 to counter continued global supply chain disruption.

What did management say?

Group managing director and CEO Anthony Heraghty was upbeat following the result:

We are pleased to report a record sales and earnings result for FY21, driven by unprecedented consumer demand in our lifestyle and leisure categories.

Successful omni-retail execution, investment in our supply chain and focus on inventory management have been key in meeting elevated volumes of demand in both our in-store and online channels.

What's next for Super Retail?

Despite the strong result, Super Retail is looking ahead at FY22 with its latest trading update. The Super Retail share price will be worth watching with the retailer reporting 62% in online sales growth in FY22 so far and click and collect sales up 137%.

Total group sales in this financial year are up 15% compared to the equivalent period in FY20. Super Retail did admit, however, that the trading outlook remained uncertain given the risk of intermittent lockdowns and travel restrictions.

The Super Retail share price is up 19.6% so far this year and outperforming the S&P/ASX 200 Index (ASX: XJO) by 7.2%.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

Up 74% in 2024, why is this ASX 200 stock rallying today?

Recurring revenues continue to grow.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

Guess which ASX All Ords share is soaring on 21% FY 2024 growth

Investors are piling into the ASX All Ords share today. Let’s find out why.

Read more »

Girl sliding down on snow with arms spread out.
Earnings Results

Elders shares on ice for a $475 million acquisition after profits plunge 55%

What on earth is going on with Elders shares today?

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Energy Shares

This ASX 200 mining stock just reported a 40% earnings jump

Investors appear pleased with this miner's performance during the first quarter.

Read more »

Business people discussing project on digital tablet.
Earnings Results

2 ASX All Ords shares surging over 10% on strong results

Investors are buying these shares in response to strong results this morning.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A man cheers after winning computer game while woman sitting next to him looks upset.
Earnings Results

2 high-flying ASX 200 gaming shares splitting ways today

Which gaming giant is winning the admiration of investors amid results?

Read more »

Male building supervisor wearing high vis vest and hard hat stands and smiles with his arms crossed at a building site
Industrials Shares

This $23 billion ASX 200 stock is surging 6% while the market sinks. Here's why

This ASX 200 stock is shrugging off the wider market sell down today and racing higher. But why?

Read more »