Unlike many companies, diverse retailer SUL, which owns brands such as Super Cheap, Rebel & BCF, talked more positively about the start of FY24, and the stock reacted accordingly, surging above $14. FY23 numbers were also strong; sales of $3.8bn were up 7.1% on the year and in line with consensus, while Net Profit After Tax (NPAT) of $273.5m was up +12%, ahead of the expected $261m. Overall, we thought their result was encouraging, illustrating that quality operators can still perform in a tough environment.
- If/when we add to our retail exposure, SUL is the likely vehicle of choice as we stick with the strength – we own Premier Investments (PMV) in our Emerging Companies Portfolio.
MM is cautiously bullish on SUL under $12.50
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