What Happened to the Super Retail Group Share Price?
Super Retail Group Limited [ASX:SUL] is an Australian specialty retailer. The three main retail divisions are auto, leisure and sports. Under the Super Retail Group name are seven key retails brands. These brands include Supercheap Auto (auto retailing), Ray’s Outdoors and Boating Fishing Camping (leisure retailing), and Rebel Sport and Amart Sports (sports retailing).
The 725 store network extends across Australia and New Zealand. The company sources most of its stock from Asia and India.
The share price closed down 2.66% lower on Wednesday.
Why Did This Happen to SUL Shares?
The positive financial results for SUL have worn off as investors are cashing in on the recent share price increase. Net profit for the 2014 financial year was 5.6% higher at $108.14 million. Revenue grew by 4.6% to $2,112 million.
What Now for Super Retail Group Limited?
It’s been a tricky year for Super Retail Group.
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The share price has been trending down since early December 2013. Around this time SUL issued a warning that net profits would be down on the previous year. Subsequent financial estimates have seen the share price plunge from $14.02 to a low of $8.13 in June.
Also, Super Retail are warning shareholders that significant investments in supply chain infrastructure and IT systems will mean that books won’t be in the black until the start of 2015.
Moving forward, Super Retail will add another 30 stores to their network this year. And they’ll refurbish another 80 over the next 12 months.
SUL announced a 2014 full year dividend of 40 cents. Up 2 cents from 2013.
Does this make them a buy? UBS research has a medium term price target of $11.90.
But the share price sell off may continue. If this happens, it is likely to find support around $8.70 in the short term.
Shae Smith+
Editor, Money Weekend
The post Why the Super Retail Group Share Price Fell Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
