Super Retail (ASX: SUL) share price climbs on FY21 results

Why this Aussie retail share is on the move in early trade.

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The Super Retail Group Ltd (ASX: SUL) share price is climbing higher this morning following the company's latest full-year results release.

In opening trade today, the Super Retail share price is up 1.8%, trading at $13.3.

Super Retail share price jumps on earnings, dividend boost

The Aussie retailer provided an update on performance for the year ended 30 June 2021 (FY21) including the below highlights:

  • Record full-year result with sales up 22% to $3.45 billion
  • Segment earnings before interest and tax (EBIT) up 80% to $476.8 million
  • Segment normalised profit before tax (PBT) up 108% to $435.8 million
  • Normalised net profit after tax (NPAT) up 107% to $306.8 million

The Super Retail share price is one to watch today after also announcing a fully franked final dividend of 55 cents per share.

That brings the full-year dividend to 88 cents per share compared to just 19.5 cents in FY20.

What happened in FY21 for Super Retail?

Online sales surged 43% to $415.6 million with Super Retail touting its 'omni-retail strategy' as key to withstanding COVID-19 restrictions.

All four of Super Retail's major brands (Supercheap Auto, Rebel, BCF and Macpac) reported strong like-for-like (LFL) sales growth during the year. BCF led the way with 48.0% LFL growth, with Rebel (17.5%), Supercheap Auto (16.4%) and Macpac (14.2%) all hitting double digits.

The Super Retail share price has climbed higher following the result which highlighted its strong balance sheet as well as earnings. Super Retail has no bank debt with $600 million in undrawn debt facilities waiting in the wings.

Super Retail also reported a strengthened inventory position heading into FY22 to counter continued global supply chain disruption.

What did management say?

Group managing director and CEO Anthony Heraghty was upbeat following the result:

We are pleased to report a record sales and earnings result for FY21, driven by unprecedented consumer demand in our lifestyle and leisure categories.

Successful omni-retail execution, investment in our supply chain and focus on inventory management have been key in meeting elevated volumes of demand in both our in-store and online channels.

What's next for Super Retail?

Despite the strong result, Super Retail is looking ahead at FY22 with its latest trading update. The Super Retail share price will be worth watching with the retailer reporting 62% in online sales growth in FY22 so far and click and collect sales up 137%.

Total group sales in this financial year are up 15% compared to the equivalent period in FY20. Super Retail did admit, however, that the trading outlook remained uncertain given the risk of intermittent lockdowns and travel restrictions.

The Super Retail share price is up 19.6% so far this year and outperforming the S&P/ASX 200 Index (ASX: XJO) by 7.2%.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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