Rebel’s gross margin has declined by 110 basis points in FY25, with parent company Super Retail Group citing elevated stock loss activity and the costs associated with Rebel’s refreshed loyalty program.
The group’s annual report added that several work programs and initiatives were implemented to address the stock loss issue, “which has proven a challenge for the business.” Later in the report, the group confirmed much of the stock loss is attributable to theft.
The group delivered a 45.6 per cent gross margin in the period, which was 50 basis points below the previous year. The decline in gross margin was predominantly attributed to Rebel. Gross margins improved in two of its other subsidiaries, Supercheap Auto and Macpac.
Super Retail’s other retail subsidiary BCF also reported a decline in its gross margin, down 60 bps.
Rebel’s gross margin slip comes as total sales for the retailer lifted by 4.8 per cent to $1.4 billion. Like-for-like sales grew by 3.5 per cent, with growth in both number of transactions and average transaction value.
“Growth was broad based, with strong contributions from footwear and licensed apparel, women’s apparel and fitness tech,” Super Retail reported. “Sporting equipment categories returned to growth after a period of consolidation post the COVID-19 period.”
Despite the gross margin fall, segment profit before tax margin declined by a more modest 50 bps, as the decline in gross margin was partially offset by a reduction in cost of doing business as a percentage of sales.
Active club membership growth accelerated to 6 per cent and club members represented 81 per cent of total sales. Online sales of $248 million represented 18 per cent of total sales. Click & Collect represented 27 per cent of online sales.
Rebel opened five stores, and closed two, resulting in 162 stores at period end.
For the group, Super Retail recorded a 4.5 per cent lift in total sales, just nudging past $4 billion.
Group online sales increased by 8 per cent to $524 million. Online sales as a percentage of total sales increased to 13 per cent, up from 12 per cent in the pcp.
Super Retail added that Click & Collect sales accounted for 45 per cent of group online sales.
Group normalised cost of doing business as a percentage of sales was flat, with the impact of inflation on wages and rent offset by cost discipline, primarily in marketing and support office functions. Lease financing costs increased by 20 bps as a percentage of sales.
Group normalised net profit after tax decreased by 4 per cent to $232 million and statutory NPAT decreased by 8 per cent to $222 million.
Looking into the new financial year, Super Retail’s like-for-like sales were up 3.1 per cent, with total sales up 5 per cent for the first seven weeks of FY26.
Rebel generated 2.7 per cent like-for-like growth, reflecting the varying demand patterns observed in the category calendar year to date. Super Retail noted positive contributions from footwear, licenced and equipment were partially offset by softness in apparel.
Macpac delivered like-for-like growth of 1.9 per cent, cycling 9 per cent in the prior corresponding period. July trading was influenced by the timing of promotional activity, with a lower level of in-market promotions relative to the pcp.
In Australia, like-for-like sales grew 3.7 per cent, partly offset by a 1.8 per cent decline in New Zealand.
Supercheap Auto and BCF both reported slightly higher growths than Rebel and Macpac in the same period.