Inflation and the rising cost of living hit many Aussies in the back pocket last half, but that didn't stop consumers from shopping with these retailers. Shares in 2 ASX retail icons are rocketing on earnings announcements on Thursday.
Let's take a look at what's got the market so hyped up over their results.
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These ASX retail shares are rocketing more than 6% on results
First up, the Universal Store Holdings Ltd (ASX: UNI) share price is up after the retailer posted a 34.5% jump in sales for the first half of financial year 2023. Right now, stock in the youth apparel specialist is trading 7.5% higher at $5.71.
The company's sales reached $145.7 million last half as it cycled previous COVID-19-induced closures. At the same time, its net profit after tax (NPAT) jumped 31.7% to $17.8 million.
That saw Universal Store post a 14 cent per share interim dividend. The offering marks a 27% jump on last year's 11 cents per share payout.
Its gross profit margin improved by 1.7% to 58.9% last half. Meanwhile, its cost of doing business rose 2.7% to 30.6% of sales amid higher employee and occupancy costs, as well as its acquisition of Cheap Thrills Cycle.
Commenting on the company's results, CEO Alice Barbery said:
With the lifting of COVID restrictions, large social gatherings like festivals and concerts are gaining momentum, leading to an increase in foot traffic as customers plan for these events.
The company declined to provide full-year guidance amid global and domestic economic uncertainty.
Meanwhile, the share price of discount retail icon The Reject Shop Ltd (ASX: TRS) is taking off today, gaining 6.08% at the time of writing to trade at $4.19.
Sales at the discount store lifted 3.5% last half to $439.7 million while its profit lifted 6.2% to $16.3 million.
The company saw a lift in sales of consumables as the cost of living caught up with customers. At the same time, sales of general merchandise slipped as lockdowns were cycled.
The retailer admitted its general merchandising and seasonal offerings were "not optimal in terms of newness, variety, and value for our customers" last half. A new merchandising strategy is currently being implemented.
Excitingly, the company intends to return to dividend in the second half if trading meets expectations.
Chair Steven Fisher commented on the retailer's future, saying:
The combination of our improving merchandise offering, experienced senior leadership team, and strong balance sheet, positions the company well to create value for shareholders by growing comparable store sales and continuing to expand the store network.
Like Universal Stores, The Reject Shop declined to provide full-year guidance. Though, it noted it typically generates higher sales in the first half.
