SYDNEY — Super Retail Group Ltd. said its inventory balance fell as it reported record first-half sales, driven by strong trading in the run-up to Christmas.
Super Retail said group sales in the six months through December rose by 15%, with double-digit growth at its Supercheap Auto, Rebel and Macpac brands. First-half revenue totaled 1.96 billion Australian dollars (US$1.33 billion), while normalized pre-tax profit is expected by management to be in a range of A$212 million to A$218 million.
“Effective and targeted promotions and a disciplined approach to cost management has ensured that this top-line growth has translated into strong first-half earnings,” said Chief Executive Anthony Heraghty.
He said the group’s inventory balance at the end of December was around A$30 million lower than a year earlier.
“Over that same period, inventory units cover (weeks) has decreased by approximately one month,” Mr. Heraghty said. “The group’s inventory balance is expected to continue to normalize during the second half as purchase orders are adjusted to reflect current stock levels.”