News: The Reject Shop profit falls, new stores rise

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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.