This week Reject Shop Limited [ASX:TRS] stabilised their share increase, which has been on the rise for months.
At the beginning of the year they stood at $5.93 in stock value. And have now closed at a value of $6.93.
Operating a large variety of retail stores throughout Australia, the Reject Shop distributes an abundance of products.
They stand at a market cap of $200.285 million and have been operating since 1981.
At time of writing their share price has grown 0.14%.
The company has consistent market focus
The Reject Shop has brought customers back into their stores by increasing the availability of everyday items such as laundry powder and tissues.
They have reported back a $17.7 million first half profit, which is an increase from their prior $16 million profit outcome.
Managing director Ross Sudano said:
‘Our customers have come back to The Reject Shop as they have positively responded to the increased availability of key everyday items such as laundry powder, tissues, dishwashing tablets and bulk coathangers, as well as branded products.’
The rise in customer numbers prompted sales to increase, with overall sales increasing by 1.1% during the Christmas period.
Mr Sudano says they have focused on improving product availability, especially in regards to everyday household items.
He believes that the overall challenge will be stabilising the company’s consistent growth.
Implementing strategies to achieve consistent sales is one of their main focuses.
These will include changes to their product range and improvements to categories that lack product balance.
The Valentine’s Day catalogue made a great turn over, as sales went up considerably around that time.
The Reject Shop forecast a year-round profit between $16.5 million to $17.5 million.
Mr Sudano expects the shop to make a significant turnaround in comparison to the $12.3 million profit they made in 2017.
For Money Morning
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