Super Retail Group has confirmed a slowdown in like-for-like sales across its footwear and apparel division.
Macpac recorded an 8% decline in the first sixteen weeks of FY24, a sharp turnaround on the 76% like-for-like sales growth reported in the previous corresponding period.
Activewear giant Rebel also shifted from a 20% like-for-like sales rise in the first sixteen weeks of FY23 to 0% this year.
Super Retail Group CEO Anthony Heraghty cited weather conditions for the slowdown in winter apparel transactions.
"Sales in travel related categories (backpacks and luggage) are growing strongly, however unseasonably warm weather has affected sales of insulation and rainwear products," Heraghty said.
“rebel rCX and new regional stores continue to perform well and its flagship store in Emporium, Melbourne is on schedule to open prior to Christmas. In addition, the new rebel active customer loyalty program will launch by the end of October."
Despite inflationary pressures affecting the cost of goods sold, the Group's gross margin as a percentage of sales remained modestly favorable to the prior comparative period.
Heraghty warned that broader economic conditions were likely to impact the Group moving further into FY24.
“As previously announced to the market, as a result of continued inflationary pressures on wages, rents and electricity costs, the Group expects its cost of doing business (CODB) as a percentage of sales to increase in FY24.”