Why are shares in The Reject Shop (TRS) down today?
TRS -10.28%: shares in discount supermarket business The Reject Shop have been sold off hard today. The company gave disappointing guidance after seeing “challenging” trading conditions since the half year result. for the 48 weeks so far this year, LFL sales are down 1.4% while CBD based stores are down a worrying 12% in the same period. On the other side of the equation, cost pressure is weighing on margins as TRS struggle with inventory particularly as a result of international trade delays. The company provided guidance for the first time, expecting EBITDA $8-10m in the full year, while being double FY20’s result it is ~25% below market expectations.
