Super Retail Group (SUL) is tracking a lot better. SUL's 1H15 result was in-line/slightly higher than expectations after a raft of downgrades

Super Retail Group (SUL) is tracking a lot better. SUL's 1H15 result was in-line/slightly higher than expectations after a raft of downgrades. Its trading update was very strong, with all three divisions reporting strong comps. It's been a rough 12 months for the company and while we expect the high growth days are now behind it we are also starting to sense the worst is behind the group as well. SUL is coming out the other side of its cannibalisation issues and the recent positive comps provide some validity to this being one of the key drivers of recent weakness. However, regional related weakness will remain while mining activity is low. Management's lack of meaningful strategy change within Ray's is disappointing, although we expect extracting this brand from the division would be messy and difficult (shared overhead, cross over of stores etc). Read more of Morgans reporting season commentary on BLX, DCG, PNA, WEB. (VIEW LINK)


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