Super Retail Group (SUL) slumped after issuing revised earnings guidance only a month out from reporting season

Super Retail Group (SUL) slumped after issuing revised earnings guidance only a month out from reporting season. For many years the stock has been perceived as one of the benchmarks in the retailing space as it successfully acquired and integrated new businesses. One of the issues for SUL is that the performance had been so good for so long that the business was priced for perfection and until recently was commanding a P/E of 24 times. On Friday the Company asked analysts to rethink their expectations for future earnings growth, highlighting softer sales (apparently related to mining sector slow down) and a series of internal IT issues. Analysts are now more likely to shoot for full-year earnings to be about 4 per cent up on last year with investors likely to treat Super Retail like other stocks in the sector - challenged and struggling for growth. (VIEW LINK)