Super Retail’s sales momentum slowed sharply over the September quarter, with group sales averaging 2%, as higher fuel prices and negative consumer sentiment weighed on demand. The retailer's outdoor leisure brands are struggling the most.
The group boasts an impressive management team, evidenced by continuous working capital improvements and cost efficiencies.
Bears
The core business in automotive has limited growth opportunities. The increasing complexity of cars means motorists could be less inclined to maintain their own vehicles, weighing on sales for the Supercheap Auto division.
Super Retail operates in Australia and New Zealand, selling auto parts, sporting goods, and outdoor leisure equipment. The group generates revenue of over AUD 4 billion. There are generally a handful of larger players in each category in which the firm operates, with Super Retail the market leader in all three categories. The firm is growing organically, by expanding its physical store network and building its e-commerce capabilities. The last meaningful acquisitions were sporting goods retailer Rebel in fiscal 2012 and outdoor specialist Macpac in 2018.