Impact from challenging retail conditions: Footwear retailer, RCG Corporation’s stock slipped 4.5% on September 08, 2017 as the stock traded ex-dividend. The group has been removed from the S&P/ASX All Australian 200 Index effective September 18, 2017. In August 2017, the group had reported about challenging retail trading conditions that have continued since February 2017. The group’s sales performance across all business units for the months of March and April combined was below management’s expectations. For FY17, bottom line profit dropped 2.6% to $29 million after RCG wrote down the brand value at Hype by $9.7 million. On the other hand, the Athlete’s Foot’s LFL sales for the year-to-date was in line with the prior year performance. There was 79% growth in total online sales during FY2017. RCG declared a fully franked final dividend of 3.0 cents per share and expects its dividend payout ratio to be between 75% and 80% of underlying EPS for FY2018. The group has not commented on future performance at the back of volatile scenario. However, RCG is ramping up investment in digital with the aim of lifting online sales to 15% of total sales within three years.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.