Discount retailer The Reject Shop has reported a 35.8% jump in annual profit and says it expects earnings to rise this year.

The group's net profit for fiscal 2007 rose to $12.296 million, underpinned by strong annual comparable store sales growth.

Sales grew 18.3% to $280.5 million as comparable store sales grew 8.4% and 22 new stores were opened.

MD of The Reject Shop Gerry Masters said the strong financial performance clearly reflected the benefits of its accelerated store rollout program, which is forecast to continue with a further 20 new stores set to be opened in the 2008 financial year.

www.insideretailing.com.au