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RCG Corporation shareholders enjoy 219% 5-year total return

RCG Corporation (ASX: RCG), the shoe retailer that operates The Athlete’s Foot and sells such brands such as Merrell and CAT, released its 2013 AGM presentation today, and here are the highlights.

  • Total shareholder return of 219% over the past five years. The share price has gone up from $0.40 to $0.74 in the past 12 months.
  • Five-year compound annual growth rate (CAGR) was 26.1%.
  • EBITDA was up 12.6% to $15.1 million and NPAT was 10.4% higher than 2012.
  • Web-based point of sale and retail management system was rolled out this year, and is now in more than 90% of the stores for better sales integration and stock order processing.
  • Multi-channel marketing and sales system now includes a buy online and pick up in store option and store-to-door delivery. The Athlete’s Foot stores’ online community engagement is growing at pleasing rates.
  • The newly developed “Fitzi” measuring technology has been rolled out to 60 stores and will be in 80% of stores by Christmas. It is the world’s most advanced retail fitting technology, replacing the “FitPrint”.
  • Like-for-like Sales (LFL) have grown by 3.1% in the first four months of this financial year. LFL sales for September and October are coming in at 5%.
  • The growth forecast of 3%-4% for the year is on track.

Foolish takeway

The stable earnings have been good during the slow years of the recent past, so with the economy picking up now, and the company expanding its “bricks and clicks” sales systems, the revenues can go even higher from here.

Also look at other retailers like Kathmandu (ASX: KMD) nad Super Retail Group (ASX: SUL) for outdoor/leisure footwear sales, as well as Woolworths (ASX: WOW) and Wesfarmer’s (ASX: WES) in general to judge how retail sales are expanding.

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Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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