The Reject Shop (ASX: $TRS) Trading Update

The Reject Shop Limited (ASX: $TRS) has reported a 4.1% increase in sales during the second half of the financial year 2024. The company's comparable store sales for the same period have also shown a 3.3% rise. The new merchandise strategy implemented in FY24 has demonstrated positive signs, contributing to the sales growth. The Reject Shop anticipates the full-year EBIT for FY24 to be between $4.0 million and $5.5 million.

Executive Commentary

Our customers continue to respond positively to our new and improved merchandise offering with sales up 4.1% in the second half to date. We are focused on continuing to grow sales in FY25 by further refining our merchandise strategy and continuing to expand our store network. Like many Australian retailers, The Reject Shop is currently facing a number of macro and inflationary pressures, including higher wages, domestic supply chain costs, and shrinkage. As we prepare for FY25, my team and I are very focused on improving gross profit margin and managing the cost of doing business. The Company's strong balance sheet positions us well in the uncertain macroeconomic and consumer environment.

Summary

The Reject Shop Limited (ASX: $TRS) has experienced a 4.1% increase in sales during the second half of FY24, driven by growth in both customers and units per basket. The new merchandise strategy has shown positive signs, contributing to the sales momentum achieved during the first half. The company anticipates the full-year EBIT for FY24 to be in the range of $4.0 million and $5.5 million. The Chief Executive Officer, Clinton Cahn, emphasized the focus on refining the merchandise strategy and expanding the store network to drive sales growth in FY25. The company acknowledges the challenges posed by macro and inflationary pressures and is committed to improving gross profit margin and managing the cost of doing business. The Reject Shop's strong balance sheet positions it well in the uncertain macroeconomic and consumer environment. The company will provide further commentary on its financial performance when it releases its full year results in August.