The New Zealand arm of Rebel Sport scored a half-year sales result of NZ$141.5 million to July 27 this year, which is down half a million compared to the first half last year.
Despite the slip this year, it is NZ$1.6 million above 2023 numbers.
Rebel Sport NZ is managed by Briscoe Group, which also manages Briscoes Homeware. Total group sales for the first half were down by around NZ$800,000, hitting NZ$371.27 million.
Briscoe Group reported an improved sales trend through the half overall, with second quarter growth up 2.07 per cent compared to a 2.58 per cent fall in the first quarter.
Group managing director Rod Duke said the trading environment in New Zealand was mixed, with the first quarter being impacted by abnormal weather and promotional timing.
“To drive group sales to 99.8 per cent of last year’s record half-year sales is a terrific achievement and it’s important to recognise that in what continues to be an incredibly challenging environment,” Duke said. “Both trading segments closed slightly under last year’s sales – homeware under by 0.11 per cent and sporting goods by 0.40% per cent.”
Within the challenging total sales, the group reported a 2.92 per cent lift in online sales, with the channel contributing 19.36 per cent to total sales. This came as both Briscoe and Rebel upgraded their respective e-commerce channels to an Adobe platform.
These investments are believed to have affected the group’s gross profit margin, which fell from 42.97 per cent to 41.43 per cent in the half.
Duke reiterated the group-wide goal to stabilise gross profit margin, but noted that even though they are working hard behind the scenes, the pace of economic recovery and consumer confidence will be critical.
“Optimising gross profit while maximising sales is a constant focus for the team and they continue to do a terrific job in this relentless environment,” Duke said.
“Cost control also continues to be a focus with ongoing cost inflation widely reported as another impediment to improving consumer confidence. It is important to us to recognise the continued efforts of our team across the business and this first half has seen the flow through of the 5 per cent wage rate increase delivered in May last year as well as the additional 2.5 per cent made earlier this year.”
Utility costs continue to climb, Duke added, with increases in store rents, rates and power charges. “Strategic initiatives, while helping to protect sales and gross margin, also contributed to the additional costs during the half in relation to projects such as electronic shelf-labelling, upgrade to merchandise planning and the new online platform.”
The company is also currently running its own facial recognition trial according to its website, with 18 stores between Briscoe and Rebel taking part for a period of up to six months. This in a bid to tackle rising retail crime, including verbal and physical assault against staff as well as store theft.
Briscoe Group has also taken advantage of elevated interest rates to generate interest income. Duke said for the half year, this will close around NZ$1.96 million under last year as a result of lowered cash rates and lower cash balances amid investments. The latter is also due to the building of a new distribution centre in Drury.
Briscoe Group is also focusing more on inventory, with stock levels down by NZ$340,000 to NZ$105.98 million as at July 27.
“With pressure on sales likely to continue we have focused strongly on inventory levels during the period and we are particularly pleased with the closing position in relation to both value and quality,” Duke said.
Cash balances were down NZ$11.94 million to NZ$119.83 million, with around NZ$22 million of creditor payments included in the trade payables balance being paid by July 31.
“With the significant investment the Group is making across the next 18 months in establishing the new distribution centre, combined with the seasonality of our operational cashflow, the group will establish a funding facility to support future cash flow requirements,” Duke said.
“Looking ahead, we remain cautious about the retail environment. In the absence of a clear uplift in consumer confidence, the ongoing economic headwinds may result in a full-year NPAT closer to NZ$60 million.”
2024-25 NPAT was NZ $68 million.