ASX-listed Super Retail Group has unveiled its H1 FY24 trading performance update, forecasting a record first half revenue of $2 billion even amid tougher retail conditions thanks to cost-of-living pressures and inflation.

The group's first half profit before tax (PBT) is anticipated to land between $200 million and $203 million, with the final results set to be released on 22 February 2024.This achievement comes despite a challenging retail trading environment, marked by cost of living pressures.

Group CEO and Managing Director, Anthony Heraghty, expressed satisfaction with the performance, saying SRG traded well over the cyber sales and Christmas holidays, maintaining positive like-for-like sales growth in the first half. However, the company has not been immune to the broader economic climate. The gross margin (%) in H1 FY24 is expected to be higher than H1 FY23, but the cost of doing business (CODB) has risen due to inflation impacts on wages, rent, and electricity.

"Despite this, our customer proposition and the resilience of the lifestyle and leisure categories in which we operate underpin our performance in challenging economic conditions where consumers are sharpening their focus on value," Heraghty said.

SRG also revealed its new customer loyalty program at rebel, launched in October 2023, had already seen over 40% of 3.9 million active club members earn points by shopping. The provision for deferred revenue as a result of loyalty credits issued to customers under this program is expected to be approximately $5 million in H1 FY24 and approximately $8 million in total for the full year FY24.

The Group ended the first half with no drawn bank debt and a positive cash balance, demonstrating its financial resilience. The final first half results are due on 22 February 2024.