Latest news with #AnthonyHeraghty
West Australian
08-05-2025
- Automotive
- West Australian
Rebel, Supercheap Auto owner Super Retail Group warns of profit margin squeeze, cost blowout
Super Retail Group has warned shareholders of a profit margin squeeze and soaring costs, blaming subdued trading conditions, heavy discounting and an expensive overhaul of an ageing payroll system. The ASX-listed SRG is behind big box outlets Supercheap Auto, Rebel, BCF and Macpac. In an aftermarket announcement on Wednesday, the company disclosed group gross margins for the second half to date were tracking below the prior comparable period. This was 'broadly consistent' with the year-on-year decline recorded in the first half of the 2025 financial year, it said. The trading update sent shares 0.2 per cent lower to $13.37 just before 10am on Thursday. While group like-for-like sales growth is up 3.1 per cent since January, Super Retail warned retail trading conditions remained subdued, particularly for its New Zealand stores. Supercheap Auto sales fell 0.1 per cent for the second half to date amid heavy discounting in the auto category. Supercheap Auto is facing greater competition in the category with Wesfarmers-owned Bunnings' bigger push into the automotive sector. 'The team has focused on moving away from lower yielding promotional activity whilst maintaining competitiveness and managing costs in what remains a lower growth environment near term,' Super Retail said on Wednesday. Sales at Rebel — set to face competition with the entry of British sporting goods giant Sports Direct in Australia — rose 3.5 per cent as it experienced an acceleration in growth. This was despite a $5 million hit from disruptions caused by cyclone Alfred on the east coast. BCF was the star performer for Super Retail with a 9.1 per cent lift in sales. The retailer is also replacing its ageing payroll system and building a new HR management platform, while transitioning to a new distribution in Victoria. These initiatives were expected to push the retailer's unallocated costs to $42m this year, compared with $36m in 2024. SRG has been embroiled in allegations of an illicit affair between boss Anthony Heraghty and the company's former chief human resources officer Jane Kelly.
West Australian
07-05-2025
- Business
- West Australian
Sports Direct's entry into Australia, New Zealand comes at expense of Super Retail Group's Rebel
British sporting goods giant Sports Direct's entry into Australia is set to disrupt the nation's $5 billion fitness retail market and will come at the expense of incumbent Rebel, according to a major analyst. Announced last month, the tie-up between London-listed Frasers Group and footwear retailer Accent Group will see the initial roll-out of at least 50 Sports Direct stores in Australia and New Zealand over the next six years. Morgan Stanley analysts on Wednesday said Sports Direct could succeed locally, given its parent company Frasers and Accent already have differentiated access to global brands like Nike, Adidas and Skechers. As a consequence, they expect about 25 per cent of Sports Direct sales to come at the expense of Super Retail Group's Rebel. While the earnings impact was likely insignificant across the 2025 and 2026 financial years, Morgan Stanley sees a downside risk to consensus earnings in the 2027 to 2029 financial years as Sports Direct begins to scale. They said the Sports Direct customer proposition would largely be on par with Rebel, albeit with a greater focus on private label. '(Super Retail Group's) risk profile had increased as they face greater competition in their two largest divisions, Rebel and Bunnings,' Morgan Stanley said in a note to clients. 'This comes at a time when margins across the group are under pressure given the challenging operating environment.' Anthony Heraghty, chief executive of Super Retail Group - which also owns Super Cheap Auto and BCF - told analysts earlier this year he was not intimated by a bigger push from hardware giant Bunnings into the automotive sector. The push follows the success of Bunnings' move into pet goods and cleaning products. Morgan Stanley has also revised its price targets for Super Retail Group from $13.47 to $12.20 driven by increased competition and earnings downgrades, and Accent from $2.70 to $2.50 given near-term earning dilution. Shares in Super Retail Group were up 1.05 per cent to $13.39 and Accent up 2.4 per cent to $1.896 just before 1pm on Wednesday. Frasers is one of the world's biggest retailers of sports, premium and luxury brands with more than 1500 stores in over 30 countries. In the 2024 financial year, Frasers reported a revenue of £5.5b ($11.4b), with its UK Sports segment generating £2.9b in revenue across over 800 stores. Accent has more than 900 stores — including The Athlete's Foot, Platypus, Hype DC and Nude Lucy — in Australia and New Zealand.
