Super Retail Group has started the new financial year on a solid note, reporting stronger same-store sales growth in
its two biggest divisions, auto accessories and sporting goods.
 

In a trading update at the retailer's annual meeting in Brisbane on Wednesday, Super Retail chief executive Peter
Birtles said same-store sales at Super Cheap Auto had risen 4 per cent in the 16 weeks to October 18.

This compares with same-store sales growth of 2.4 per cent in 2014 and 3 per cent in the first six weeks of 2015.

At Rebel Sports and Amart, same-store sales had risen 3 per cent in four months, compared with growth of 2.6 per
cent in 2014 and 2.5 per cent in the first six weeks of the year.

However, same-store sales in the leisure business, which includes Ray's Outdoors, BCF and FCO outdoor leisure
stores, had fallen 8 per cent, compared with a decline of 0.2 per cent in 2014 and a 9 per cent drop in the first six
weeks of 2015.
 

The update was welcomed by shareholders. Super Retail shares, which have fallen 42 per cent over the last 12 months
, rose 34¢ to $8.00 on Wednesday after hitting a two year low of $7.59 last week.
 

Mr Birtles said overall sales so far this year had been in line with expectations but sales in leisure continued to come under
pressure from new store cannibalisation and weak trading conditions in mining and regional areas.

This impact was expected to reduce in the June half as Super Retail cycled weaker second half sales in 2014, but
Super Retail has launched a review of Rays Outdoors and FCO.
 

Mr Birtles said gross margins were tracking below those in the previous corresponding period but were expected to
be in line with margins for the full year.
 

Depreciation costs were tracking in line with company forecasts for a 20 per cent increase over the full year, reflecting
investment in information technology and distribution centres over the last three years.Super Retail expects to spend $90
million this year (vs $113 million in 2014) on new stores and refurbishments, fitting out its new distribution centre in Brisbane
and improving its multi-channel offer.
 

Super Retail plans to open 10 new auto accessories stores, four leisure stores and 14 new sports stores, mostly under the Amart brand, this year.
 

Another 45 auto stores, three BCF stores and 15 sports stores will be refurbished.

More to come ...