Super Retail shares are being hammered

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Shares in Super Retail Group fell hard after taking an impairment on the Ray’s Outdoors brand.

A short time ago, shares in the owner of Supercheap Auto, Rebel and BCF were down 16.7% to $8.37.

Statutory profit for the first half was up 33.6% to $44.9 million but the normalised result was down by 2.2% to $58.9 million compared to an adjusted $60.2 million the year before.

Revenue for the six months to December was up 6% to $1.215 billion

The $20 million mark down of the Ray’s Outdoors brand name was based on the underperformance of the older format stores.

CEO Peter Birtles says the company has invested in start-up digital businesses, including Fixed Price Car Service and Youcamp.

Over the full year, the company expects to expense rather than capitalise digital investment costs of $8 million.

Birtles says the second half has started well.

Like for like sales growth has been about 4% in the auto division, 12% in the leisure division and 5.5% in the sports division for the first eight weeks of the second half.

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