EXEC: Super Retail Group Posts Solid Year But H2 Trends Cut Into H1 Gains

Super Retail Group, the Australia-based parent of the Rebel sports, BCF outdoor and Macpac outdoor retail chains, reported that sales for fiscal 2023 rose 7 percent to A$3.80 billion. Adjusted for the 53rd week in fiscal 2022, sales were up 9 percent for the year.

Comp-store sales were up 8 percent for the 12-month period ended June 30. Comp-store sales moderated in the second half after posting 11 percent growth in the first half as the Group “cycled strong sales in the PCP (prior corresponding period) and higher cost of living pressures impacted consumer spending,” while first-half sales were comping against COVID closures.

Group online sales were A$445 million for the year, representing 12 percent of Group sales, down from 17 percent in the prior year as customers reverted to pre-pandemic shopping behavior. Click & Collect sales – similar to BOPIS in the U.S. – comprised 48 percent of Group online sales.

Group gross margin declined 60 basis points (bps) year-over-year to 46.2 percent as the level of promotion activities continued to normalize.

Segment pre-tax profit was up 12 percent to A$391 million. Net income was up 9 percent for the year to A$263 million and adjusted net income grew 12 percent to A$274 million.

Rebel
The Rebel retail stores segment saw total sales increase 8 percent to A$1.31 billion in fiscal 2023, driven by comp store sales growth of 9 percent, reflecting higher average transaction value (ATV), driven by double-digit growth in transaction volumes. Adjusting for the 53rd week in fiscal 2022, retail sales grew 10 percent for the year.

Comp-store sales growth moderated in the second half, growing 7 percent after a strong H1 performance with 11 percent growth. Total sales grew 13 percent in the first half.

Rebel saw A$198 million in online sales for the year, representing 15 percent of total sales. Click & Collect (BOPIS) represented 33 percent of online sales.

Performance sports (basketball and football) were the strongest performing category, driven by the “homes of sport” format and with the men’s Football World Cup driving strong sales growth in licensed football products.

Segment pre-tax margin declined 40 bps for the full year after expanding by 100 bps in the first half. The company said an 80 bps decline in gross margin was partially offset by a reduction in operating expenses.

Segment pre-tax profit increased 4 percent to A$146 million.

Rebel’s active club membership grew by 13 percent and club members represented 73 percent of total sales.

Rebel had 159 stores at the period end after adding four stores during the year.

BCF
The BCF outdoor retail chain reported total sales increased 1 percent to A$840 million for the year. Sales rose 3 percent when adjusting for that extra week in fiscal 2022.

Comp-store sales were flat for the year after declining 2 percent in the H1 period. Comps increased 3 percent in the second half of the year. Transaction volumes increased but ATV declined modestly as BCF “responded to aggressive markdown activity from competitors.”

BCF posted online sales of A$94 million, representing 11 percent of total sales. Click & Collect (BOPIS) represented 60 percent of online sales.

Fishing delivered the strongest category growth while camping sales were flattish to the record year in fiscal 2022. Dometic, Shimano, Weber, Engel, and Yeti were some of the strongest-performing brands.

Segment pre-tax margin declined by 110 bps as lower operating expenses partly offset a 180 basis points decline in gross margin due to increase promotional activity. Segment pre-tax profit of A$51 million was 14 percent lower than the prior year.

BCF’s active club membership grew by 6 percent and club members represented 89 percent of total sales.

BCF opened 11 stores and closed one store during the year, resulting in 157 stores at year-end.

Macpac
Macpac total sales increased 22 percent to A$216 million (+27 percent adjusting for the 53rd week in fiscal 2022) driven by an increase in travel and outdoor adventure activity following the removal of lockdown restrictions that affected the prior year’s results.

Comp-store sales increased by 26 percent in Australia and by 20 percent in New Zealand. Sales in key travel categories including backpacks, thermals and luggage benefitted from growth in outbound tourism. Favorable weather conditions were said to drive strong sales in insulation and wet weather apparel.

Macpac’s online sales represented 18 percent of total sales or A$39 million for the year. Click & Collect (BOPIS) represented 16 percent of online sales.

Segment pre-tax margin growth of 280 bps reflected a 140 bps improvement in gross margin and higher operating leverage from record sales.

Macpac delivered segment pre-tax profit of A$29 million, a 54 percent increase from the prior year.

Macpac’s active club membership grew by 28 percent and club members represented 67 percent of total sales.

Macpac opened six stores and closed two stores resulting in 89 stores at year-end.

Photo courtesy Macpac