SUL - Super Retail Group

I'm happy to hold this, I don't mind it isn't getting any love

TRADING UPDATE

i hold SUL ( 'free-carried' )

now to my twisted mind i class this as a 'safe-haven' as it targets the working/middle class customer ( especially as i have already de-risked it )

i am currently up 66% on this

but who knows maybe a top up opportunity awaits

“While store foot traffic and transaction volumes continue to grow, ongoing cost of living pressure is impacting number of items per sale.”

Group gross margin (%) in FY24 year to date is in line with gross margin (%) delivered in the pcp.
The Group has opened 20 stores and closed 4 stores in FY24 year to date.
The Group expects to open a further seven stores prior to the end of FY24.
2024 Enterprise Agreement Super Retail Group is pleased to advise that the Group’s 2024 retail and CCC Enterprise Agreement (EA) has been endorsed by our Australian team members and approved by the Fair Work Commission (FWC).

The EA has a three-year term and will become operative from 14 July 2024.

Under the terms of the EA, all wages-paid team members across the Group’s Australian retail stores will receive higher penalty rates and the following increases in base pay rates:
― FY25: 5.25 per cent1
― FY26: 3.25 per cent
― FY27: 3.25 per cent

The EA applies to the store wages component of the Group’s employee expenses (not support office employee expenses) and excludes retail management.
Prior to the EA, on 2 July 2023 the Group made a 3 per cent pay increase to retail team member base pay rates.
Eligible team members will also receive a one-off payment equivalent to 2.75 per cent of their annual base pay with payment to be made prior to the end of FY24.
The Group’s H1 FY24 financial results included a year-to-date provision for this one-off payment.
The FY25 increase to retail team members’ base pay rates represents a step up in retail team member expenses from FY24 to FY25 of approximately 3 per cent.
“We believe the Enterprise Agreement represents a fair and reasonable outcome for the Group and our team members” Mr Heraghty said.

The release of this announcement has been authorised by the Board of Super Retail Group.

SUL in the news for all the wrong reasons.
From Evil Murdoch Press

Time will tell whether there is substance to the allegations , or it is, as suggested by SUL, a financial shakedown by disgruntled employees aided and abetted by those crusaders for justice, a law firm.
Mick

mullokintyre said:

SUL in the news for all the wrong reasons.
From Evil Murdoch Press
View attachment 181357
Time will tell whether there is substance to the allegations , or it is, as suggested by SUL, a financial shakedown by disgruntled employees aided and abetted by those crusaders for justice, a law firm.
Mick

Click to expand...

currently way above my top up price ( i hold )

a scandal yes, but i doubt i can take advantage of it

Federal Court Proceedings

Super Retail Group Limited (ASX: SUL) refers to its release of 26 April 2024 regarding expected workplace litigation.

Super Retail Group confirms today that it has been notified of a Statement of Claim in relation to these matters filed by its former employee in the Federal Court of Australia by Harmers Workplace Lawyers.

The Statement of Claim is consistent with the allegations previously announced, save that the allegations have only been made by one employee and not two as previously expected.

The Group does not accept the claims that are set out in the Statement of Claim.

As previously announced, Super Retail Group will defend these court proceedings in relation to these matters.

As these matters are now the subject of litigation, the Group does not intend to make any further comment at this time. Super Retail Group will continue to update the market on this matter as appropriate.

The release of this announcement has been authorised by the Board of Super Retail Group Limited.

i hold SUL ( 'free-carried' )

'Market Matters' Friday afternoon report
Not Held

• Super Retail (SUL) -4.35% ended a tough week down again. We’d turned neutral around $18 and should have cut the position at that time – frustrating! They reported a mild deceleration in sales since the trading update provided at their FY24 results, and the market has turned hard. Now back to a level we’d be a buyer rather than a seller.

finicky said:

'Market Matters' Friday afternoon report
Not Held

• Super Retail (SUL) -4.35% ended a tough week down again. We’d turned neutral around $18 and should have cut the position at that time – frustrating! They reported a mild deceleration in sales since the trading update provided at their FY24 results, and the market has turned hard. Now back to a level we’d be a buyer rather than a seller.

Click to expand...

better them than me ( buying near current levels )

i bought in years back and at much lower levels

i hold SUL ( free-carried' )

hmmm holding up ( so far ) reasonably well but it looks like extra stores have been doing the heavy lifting

A snippet from Market Matters this morning discussing whether it would be a good idea to switch from SUL to JBH.
marketmatters.com.au

I hold neither

" .. ..
Conversely, SUL has struggled this year after a poor trading update in February, combined with the news that UK retail giant Frasers announced an aggressive plan to take on Rebel in Australia with 100 Sports Direct Stores. While the risks add up that SUL has underperformed JBH over the last six months, we believe the elastic band has stretched too far.

This morning, SUL released a trading update that showed a mild improvement in group sales growth to a year-to-date run-rate of 4.2%, though they flagged softer margins, an increase in costs, and some mixed fortunes across their stable of brands, with BCF the star while Macpac struggled. Overall, there doesn’t appear to be a catalyst to address the recent underperformance in today’s update!

We would need the gap between SUL and JBH to close before considering a switch: We hold SUL in our Active Growth and Active Income Portfolios.

MM is long and bullish SUL"

i bought into SUL ( in preference to JBH )

because

1. i felt the JBH swing into white goods ( mostly kitchen appliances ) was the wrong path to take , when i visited JBH ( before they chose that path ) JBH was awash with younger customers ( under 30 ) and thought they might have leveraged that customer base by moving into online ( and event ) ticket sales , and pre-release ordering as well as more current products via an online store

2. in my calculations SUL had better metrics and had a wider diversity of products and customers ( which i considered superior in want i saw a struggling consumer market )

i was buying SUL between May 2014 ( @ $9.15 ) and March 2018 ( @ $6.47 ) , and have recused the investment cash in 2023

Super Retail Group (SUL) $18.57

"SUL +12.34%: A solid FY25 result, although we initially thought we must have missed something when the stock surged above $20. It was likely a dearth of sellers who drove the price to fresh all-time highs before calm returned and the stock spent most of the day trading below $19.

Importantly, recent trading activity highlighted improving sales momentum into 1H26 for the key Supercheap Auto business – as expected, no FY26 guidance was given.

Revenue of $4.07nbn came in just above expectations.
NPAT of $232.4mn beat expectations of $217.7mn by +5.9%.
They also announced a 30c special dividend in addition to its 34c dividend, both of them being fully franked.
We own SUL for both growth and income in two of our portfolios."

Not held by me