The Reject Shop Limited
(ASX:TRS) has reported an annual profit drop amid what it describes as an extremely challenging year for Australian retailers.
The discount retailer’s net profit fell 25 per cent to $14.5 million in the full 2014 financial year, inline with downwardly revised guidance in June.
Excluding the cost of new store openings and non-cash charges over the year and insurance amounts the prior year the company’s underlying net profit dipped 2.3 per cent.
Chairman Bill Stevens says weak pre-Christmas and Easter trading periods and lower sales between May to June put pressure on comparable store sales.
Over the year The Reject Shop opened a record 46 new stores and is planning to open another 20 new stores this year.
A fully-franked final dividend of 8.5 cents per share has been declared, representing a payout ratio of 60 per cent.
