The Reject Shop (ASX:TRS) reports mixed FY24 performance

The Reject Shop reported its results for the fiscal year ended June 30, revealing a mixed performance marked by significant sales growth but declining profitability.

Sales for the year reached $852.7 million, up by 4.1% from the previous year. Comparable store sales also saw an increase of 2.6%.

The company's earnings before interest and tax decreased 41.3% pre-AASB 16, from $9.1 million to $5.4 million, while net profit after tax declined 35.9% to $4.8 million.

Steven Fisher, chair of The Reject Shop, commented, "The Reject Shop is a merchandise-led business and, at the beginning of FY24, we committed to materially improve our merchandise offering."

"I am pleased that, in its first full year, our new product has resonated well with customers as demonstrated by the achievement of solid sales growth in a challenging macro and retail trading environment," Fisher added.

CEO Clinton Cahn added, "Our customers are responding positively to our new and improved merchandise offering. I am pleased to share that, during FY24, the Company generated around 2 million more customer transactions than it did in the prior year, reported record full-year sales and recorded positive comparable store sales growth in a challenging economic and trading environment."

The company continues its expansion, opening 17 new stores in FY24 and planning to open up to 20 more in FY25.

The balance sheet remains strong with a net cash position of $49.9 million, although this is a decrease from $77.3 million in FY23, primarily due to shareholder dividends and a share buy-back program.