Rebel, Macpac sales cool as cost of living bites

Rebel and Macpac have recorded a decline in like-for-like sales (LFL) sales for the first six weeks of the new financial year.

Rebel total sales increased 8 per cent to $1.31 billion in FY23, with LFL sales moderating to a 1 per cent decline for the start of FY24. Macpac LFL sales also decreased by 9 per cent for the period, despite sales growth of 22 per cent to $216 million in FY23.

Super Retail Group CEO Anthony Heraghty said the business is prepared for a shift in the consumer environment this year.

"Sales growth has continued to moderate as the Group cycles strong sales in the prior year and rising interest rates and cost of living pressures dampen consumer spending," he said.

"The Group has a solid track record of performance through the economic cycle. Our customer value proposition and low average ticket price means we are well positioned for a more value-conscious consumer environment."

Rebel LFL sales increased by 9% in FY23, reflecting higher ATV driven by double-digit growth in transaction volumes. Following a strong first half trading performance, LFL growth moderated to 7 per cent in the second half.

Performance sports such as basketball and football were the strongest performing category, benefitting from the successful roll-out of the “homes of sport” format, key events such as the FIFA Football World Cup and a rebound in participation in grassroots sport.

Active club membership also grew by 13 per cent to 3.7 million and club members, now representing 73 per cent of total Rebel sales. Meanwhile online sales represent 15 per cent of total sales at $198 million.

Heraghty said the group will focus on organic growth opportunities across its core brands, including a continued rollout of Rebel rCX store formats.

“We also see a significant opportunity to leverage our customer loyalty base, including through the relaunch of the Rebel loyalty program prior to Christmas," he confirmed.

Macpac recorded LFL sales growth of 24 per cent in FY23, driven by strong transaction growth and higher ATV compared to the pcp. Like-for like sales increased by 26 per cent in Australia and 20 per cent in New Zealand.

Key travel categories including backpacks, thermals and luggage benefitted from growth in outbound tourism, while favourable weather conditions drove strong sales in insulation and wet weather apparel.

Segment PBT margin increased by 280 bps due to a 140 bps improvement in gross margin and improved operating leverage from higher sales. Segment PBT increased by 54 per cent to almost $29 million.

Active club membership grew by 28 per cent to more than 700,000 and club members represented 74 per cent of total Macpac sales.

Rebel opened four new stores in fiscal 2023, resulting in 159 stores at period end. Macpac opened six stores and closed two stores resulting in 89 stores at period end.