Rebel sport finished their first half on a positive note, posting an 8.1% sales increase from A$143.6 million ($78.1 mm) to A$155.2 million ($101.0 mm). The company was both helped and hurt from the rugby world cup taking place in Australia, as sales related to the event skyrocketed, but other sales lagged. As a result comp store sales were flat.
S.M. Heath, Managing Director of Rebel Sport, said, “It was out intention to position ourselves in the consumers minds as “the destination” for the Rugby World Cup we believe our investment and planning not only achieved the desired sales result but consolidated Rebel Sports reputation ”
Due to the short nature of the event, Heath said that a “substantial” amount of time and money was spent leading up to the World Cup. “Whilst advertising spend for the current period is not reflective of what we would expect a “typical” investment over the period to be,” Heath said. “Rebel Sport intends to increase its advertising spend.”
The decent sales increase did lead to some earnings growth, with the company posting a 6.5% increase in EPS, up from AU 13.44¢ (US 8¢) to AU 14.32¢ (US 9¢). This resulted in a “fully franked” dividend of AU 5¢ per share, compared to AU 1¢ last year.
Rebel has also sold 49.9% of its ownership in “Glue” youth gear stores to Hilton Seskin, Glues Managing Director. Rebel said its 51 Rebel Sport stores and five “Glue” stores will grow to a respective 52 and seven by the end of June.
