Reject Shop Ltd (ASX:TRS) on Wednesday reported a first half profit of $17.7 million, a 1.1% increase over the same period a year earlier.
Reject Shop Ltd posted revenue of $437.6 million in the period. This was 1.1% higher than the same period last year. The company announced a fully franked interim dividend of 24 cents per share, in line with last year.
The Reject Shop Ltd share price has jumped 45 cents or 7.63% higher in Wednesday morning trade.
The Reject Shop Limited offers a range of discounted general consumer merchandise. The Company offers various products, such as toiletries, cosmetics, home wares, personal care products, hardware, basic furniture, household cleaning products, kitchenware, confectionery and snack food, and lifestyle and seasonal merchandise, such as seasonal gifts, cards and wrap, toys, leisure items and home decorations. The Company operates approximately 340 leasehold stores in Australia.
Managing Director Mr. Ross Sudano, said “We are pleased to have delivered an improved performance for the half year, with encouraging signs that the changes we have made to our business can deliver consistent and sustained momentum. We are confident that we have built a new platform for the long-term growth of the business.”
Outlook
The Reject Shop is confident that the recent positive comparable sales trends in the range of 1% – 2% can continue throughout the remainder of the half. This would see an NPAT for FY18 in the range of $16.5 million to $17.5 million. This would represent a significant turnaround on the full year $12.3 million NPAT recorded in FY17.
The Reject Shop Ltd Ltd share price has gained 13% since the beginning of the year, while the S&P/ASX 200 Index has fallen roughly 2.12%. The Reject Shop Ltd share price has fallen 21.23% in the last 12 months.
