Retail in Asia

In Shops

The Reject Shop flags return to profit growth in 2016 after second-half rebound

Discount retailer The Reject Shop expects a strong rebound in same-store sales and earnings in the second half of 2015 to continue in 2016, underpinning the first full-year profit growth in four years.

After a 24 percent fall in first-half net profit to AUD12.8 million (USD9.4m), full-year net profit slipped 1.9 percent to AUD14.2 million – beating market forecasts – as the company returned to profit in the year ended June 28.

Reject Shop’s earnings have been on a downward trajectory since 2010, when the discount variety retailer earned AUD23.3 million after tax.