EXEC: Australia’s Super Retail Group Says BOPIS Now Half of Sales

Super Retail Group (SRG, Group), the parent of the Macpac outdoor brand, and the Rebel and BCF retail brands in Australia and New Zealand, reported full-year results for the fiscal year ended June 28, delivering a mid-single-digit increase in Group sales for the period despite what the company called “a challenging retail environment and heightened competitive activity.” The company also owns and manages the Supercheap Auto retail business, bringing its total retail footprint to 782 stores and seven distribution centers across three countries of operation.

Group Managing Director and CEO Anthony Heraghty said in the company’s earnings release for the year that SRG’s store investments, including the expansion of its network and refurbishments, contributed to revenue growth in the period.

Heraghty said the company’s strategic focus and investments in omni-retail execution continued to deliver results, with online sales growth of 8 percent year-over-year (y/y) and now comprising 13 percent of total Group sales. He said Click & Collect (BOPIS) continues to comprise almost half of the Group’s online sales. He said 93 percent of total Group sales are now completed in store.

Group sales increased 4.5 percent y/y to A$4.1 billion.

Super Retail Group reports in the Australian dollar (A$) currency. U.S. GAAP financial terms are defined in parentheses for each Australian term used, where helpful. All tables were created by SRG and the Australian dollar may be designated by “$” in the tables only.

“Like-for-like growth across the portfolio was mixed, with a strong performance from BCF, a solid result from Rebel and softer outcomes for Supercheap Auto and Macpac,” he shared. “Pleasingly, growth accelerated for all four brands in the second half.”

Group online sales increased 8 percent y/y to A$524 million. Online sales as a percentage of total sales increased to 13 percent, up from 12 percent in the prior year. Click & Collect sales accounted for 45 percent y/y of Group online sales.

Banner Summary

Rebel Banner
Rebel banner total sales grew 4.8 percent y/y to A$1.36 billion in fiscal 2025. Like-for-like sales grew 3.5 percent y/y, with growth in both the number of transactions and average transaction value.

Growth was said to be broad based, with strong contributions from footwear and licensed apparel, women’s apparel and fitness tech. Sporting equipment categories returned to growth after a period of consolidation post the COVID-19 period.

Gross margin declined 110 bps (basis points) y/y, reportedly due to elevated stock loss activity and the full period impact of establishing the loyalty program.

Segment profit before tax (EBT) margin declined by a more modest 50 bps y/y, as the decline in gross margin was partially offset by a reduction in cost of doing business as a percentage of sales.

Active club membership growth accelerated to 6 percent y/y and club members represented 81 percent of total sales.

Online sales of A$248 million represented 18 percent of total sales in fiscal 2025. Click & Collect represented 27 percent of online sales.

Rebel opened five stores, and closed two in fiscal 2025, resulting in 162 stores at year-end.

BCF Banner
BCF banner total sales increased by 7.9 percent y/y to A$951 million in fiscal 2025, reportedly driven by like-for-like sales growth and network expansion. Favorable weather conditions during peak periods also supported growth. Sales were further supported by a strategic investment in stock availability across key trading periods.

Like-for-like sales increased 5.4 percent y/y, said to be driven by growth in transaction volumes.

Fishing and Touring led category growth. Fishing benefited from continued investment in the ‘in-store tackle store’ initiative, while the touring category was buoyed by ongoing strength in the 4WD and caravanning markets.

Gross margin decreased by 60 bps y/y, due in part to investment in logistics and inventory availability, which enabled the stronger sales performance.

Segment EBT margin improved by 20 bps y/y as the investment in gross margin was more than offset by a reduction in cost of doing business as a percentage of sales.

Active club membership grew 9 percent y/y and club members represented 91 percent of total sales for the fiscal year.

Online sales of A$109 million represented 12 percent of total sales in fiscal 2025. Click & Collect represented 58 percent of online sales.

BCF opened five stores and closed two in fiscal 2025, resulting in 165 stores at year-end.

Macpac
Macpac outdoor brand total sales increased 3.8 percent y/y to A$231 million, supported by new store openings. Like-for-like sales increased 2 percent y/y.

Growth in the number of transactions was said to be partially offset by lower average transaction value. Like-for-like growth of 3.7 percent y/y in Australia was partially offset by a decline of 0.9 percent in New Zealand. Both regions improved in the second half, with New Zealand returning to positive growth.

Baselayers, midlayers, and gear & accessories were reportedly among the best-performing categories. In contrast, demand for insulation products was weaker, with the overall mix of sales reflecting milder conditions prevalent throughout much of the period.

Market share increased in Australia, amidst subdued overall category growth.

Macpac gross margin improved 30 bps y/y in fiscal 2025. Promotional discipline was reportedly maintained despite the softer market conditions.

Segment EBT margin declined by 390 bps y/y as the improvement in gross margin was more than offset by negative operating leverage. Operating cost inflation was partly driven by network investment, including the opening of 10 new stores with revenue yet to reach maturity.

Active club membership grew 8 percent y/y and club members represented 76 percent of sales. Online sales of A$42 million represented 18 percent of total sales in fiscal 2025.

Macpac opened 10 stores, closing four during the fiscal year, resulting in 103 stores at year-end.

Group & Unallocated
Group & Unallocated includes corporate costs not allocated to segments and customer, omni, digital, loyalty and other project costs.

Total Group and Unallocated costs increased by approximately A$4 million y/y due to the inclusion of costs associated with the new distribution center and higher net interest expense, partially offset by a reduction in Corporate, customer, omni, and digital and personalization costs.

Group Profitability & Expenses
Group gross margin decreased 50 bps y/y to 45.6 percent of net sales in fiscal 2025, which was reportedly impacted by elevated stock loss, particularly at Rebel. Supercheap Auto and Macpac both reported gross margin expansion, despite experiencing elevated competitive activity in the period.

Group normalized (Adjusted) cost of doing business as a percentage of sales was reportedly “flat” y/y, with the impact of inflation on wages and rent offset by cost discipline, primarily in marketing and support office functions.

Lease financing costs increased 20 bps y/y y/y as a percentage of sales.

Group normalized net profit after tax (NPAT) decreased 4 percent y/y to A$232 million and statutory NPAT (net profit after tax) decreased 8 percent y/y to A$222 million in fiscal 2025.

Statutory (GAAP) NPAT was down 8 percent y/y to A$222 million, with statutory EPS of 98.2 cents and normalized EPS of 102.9 cents.

Inventory Summary
Total inventory of A$887 million was A$41 million higher at year-end compared with the prior year-end, reflecting a 3 percent y/y increase in the store network (a net 23 new stores) and a 1.8 percent y/y increase in inventory per store.

The higher inventory per store was said to be attributable to cost of goods inflation, and a strategic investment to improve stock availability in store.

Inventory quality reportedly remains high, with aged inventory levels below target.

Cash Flow and Net Debt
Operating cash flow of A$577 million was A$58 million below the prior year, reportedly reflecting a A$39 million outflow of working capital, compared to a A$33 million inflow in the prior year. The A$72 million working capital differential was said to be attributable to one less payment cycle taking place in the prior year (i.e. 12 payment cycles in FY25 compared to 11 cycles in FY24).

Operating cash conversion of 95 percent remained strong, albeit below the 104 percent from the prior year due to the working capital differential.

Total capital expenditure of A$165 million was A$31 million higher than fiscal 2024.

Lease principal payments were A$33 million higher in fiscal 2025 than in fiscal 2024 due to inflation in rental costs and network expansion, as well as the same payment cycle dynamic in operating cash flow above.

The Group ended the year with a cash balance of A$63 million.

Dividends and Capital Management
The SRG Board has determined to pay a fully franked final ordinary dividend of 34 cents per share, which is at the upper end of the Group’s dividend payout policy. A franked dividend is an arrangement in Australia that eliminates the double taxation of dividends. The shareholder can reduce the tax paid on the dividend by an amount equal to the tax imputation credits.

In addition to the final ordinary dividend, the Board has determined to pay a fully franked special dividend of 30 cents per share. Together with the interim ordinary dividend of 32 cents, this represents an aggregate dividend payment to shareholders for FY25 of 96 cents per share.

After adjusting the fiscal 2025 net cash balance for the payment of the special dividend (A$68 million), the Group will have reached its targeted gearing range of between 0-0.5x pre AASB16 EBITDA.

Outlook
The Group has reportedly experienced a positive start to fiscal 2026, with like-for-like sales growth of 3.1 percent y/y, and total sales growth of 5 percent y/y for the first seven weeks (YTD).

Rebel generated 2.7 percent like-for-like growth y/y, reflecting the varying demand patterns observed in the category calendar year-to-date. Positive contributions from footwear, licensed and equipment were partially offset by softness in apparel.

BCF has seen continued positive momentum, albeit in a seasonally low period of the year. Growth was broad based across boating, camping and fishing categories.

Macpac delivered like-for-like growth of 1.9 percent y/y, cycling 9 percent y/y growth in the prior-year comparative YTD period. July trading was said to be influenced by the timing of promotional activity, with a lower level of in-market promotions relative to the prior YTD period. In Australia, like-for-like sales grew 3.7 percent y/y, said to be partly offset by a 1.8 percent y/y decline in New Zealand.

CapEx and Costs
The Group is targeting CapEx in fiscal 2026 of A$155 million to fund its store development program, completion of the new distribution centre, systems implementation and ongoing investments in cyber, omni and digital capability.

As previously reported, the Group has initiated a project to replace its end-of-life payroll system and build an associated Human Resources Core & Payroll system (HRCP). The project will be implemented over the year, with project costs reported in the Group and Unallocated segment.

The Group expects to incur duplicated operating expenses and project costs associated with the transition from existing distribution center facilities to the Group’s new Victorian distribution centre (duplication costs). These costs will also be reported in the Group and Unallocated segment.

Together, the duplication costs and the HRCP system costs are expected to total A$29 million in fiscal 2026, and form part of the Group and Unallocated segment. Total Group and Unallocated expenses in fiscal 2026 are anticipated to total A$60 million.

The Group plans to open 23 new stores in fiscal 2026 (Supercheap Auto, 8; Rebel, 8; BCF, 5; and Macpac, 2) and close nine stores.

Image and Charts courtesy Super Retail Group