Super Retail Group boss Anthony Heraghty plays straight bat regarding legal fight as it posts record sales

Shopping giant Super Retail Group has posted record full-year sales but boss Anthony Heraghty played a straight bat as to whether a workplace scandal would overshadow the results.

The retailer behind some of Australia’s best-known retail brands — including Rebel Sport and Supercheap Auto — on Thursday revealed group sales rose 2 per cent to $3.9 billion in the 12 months to June. Statutory net profit declined 9 per cent to $240 million.

Alongside its market-leading car care and sport and leisure brands, Super Retail Group also operates Macpac and BCF.

The record sales result was buoyed by Supercheap Auto’s performance, with auto maintenance (including lubricants, car detailing and power) the strongest performing category. Overall sales grew 3 per cent to $1.5b.

Super Retail, Mr Heraghty and outgoing chair Sally Pitkin are being sued by the retailer’s former chief legal officer and company secretary Rebecca Farrell.

Federal Court documents earlier this month revealed an “unhealthy culture” that developed as a result of Mr Heraghty’s undisclosed relationship with Super Retail’s former chief human resources officer Jane Kelly.

The statement of claim lifted the lid on the alleged volatile environment among Super Retail’s senior executive and complaints of a culture where employees did not feel free to speak out.

When asked if the scandal would overshadow the full-year results on Thursday, Mr Heraghty said: “That will be for others to judge.”

Mr Heraghty said it delivered solid financial performance in fiscal 2024 as record sales and higher gross margin helped mitigate the impact of inflation on its cost base.

Super Retail’s share price has surged to a record high of $17.65 by 9.45am, with investors set to enjoy a special dividend of 50¢ a share.

Sales at Rebel fell one per cent to $1.29b, BCF rose 5 per cent to $879m and Macpac growing 3 per cent to $222m.

Super Retail Group said it had made a strong start to the new financial year, delivering a 5 per cent total sales growth in the first seven weeks.

“Ongoing investment in our store network through new store openings, refurbishments and the roll-out of new formats remained an important driver of revenue growth,” Mr Heraghty said.

Mr Heraghty also declined to comment on the court case during an earlier call with investors and analysts and pointed them to an ASX statement from April.

Mr Heraghty instead said it was “appropriate to spend just a little bit more time than normal talking about the culture and engagement of our team”, highlighting a team survey during the results briefing.

“The results of that survey told us a few things: that our overall team member engagement score of 81 was two points higher than the global benchmark,” he said.

“Critically, our top leadership team’s engagement score is 86, that’s seven points above the global benchmark.”

Also reporting positive full-year result was youth-focused Universal Store, which on Thursday revealed group sales rose 9.7 per cent to $288.5m in the 12 months ended June. This was in-line with the guidance provided in July.