- When meeting with shareholders today, The Reject Shop detailed its strategy for change – an essential move after the retailer’s 2019 financial performance
- The company’s Chairman says “clearly errors were made,” as it suffered hits to its earnings, profits and sales
- Poor buying choices, theft and rising rent each played a hand in The Reject Shop’s fiscal year losses
- The Reject Shop’s share price up over one per cent today, currently sitting at $2.22 per share
At The Reject Shop’s Annual General Meeting today, company Chairman Steven Fisher dove straight into addressing, what is likely, shareholder’s biggest issue.
“Clearly errors were made,” Steven said, referencing the company’s poor financial year performance.
The variety retailer suffered financial losses from all angles throughout the 2019 financial year.
Earnings before interest, tax, depreciation and amortisation dropped by 57.6 per cent. Profit loss hit $1.5 million and sales slid 0.8 per cent from the previous year.
Steven outlined “poor buying decisions” accompanied by an inability to increase shrinkage added to the company’s losses. Additionally, he said store rentals jumped in price which resulted in a financial burden.
In response to the disappointing year, The Reject Shop’s board is undergoing a series of changes. Last month, Steven was appointed as new Chairman, and a new CEO will be announced by year’s end, the company informed shareholders.
The leadership shake-up is intended to drive turnaround – and so far it is working. During the beginning of the 2020 financial year, The Reject Shop has improved store sales from 2.5 per cent in the red to 0.3 per cent in the green.
Acting CEO Dani Aquilina said: “We encourage all shareholders to shop with us, particularly in the lead up to Christmas, and watch as out changes unfold.”
Dani’s words may have resonated with shareholders, considering The Reject Shop’s share price recorded a 1.37 per cent boost today. Shares in the company are currently trading for $2.22 apiece