Rebel Sport NZ’s parent company Briscoe Group has recorded a total revenue of $369.2 million for the first half of 2023.
This is up by $1.2 million on the same period last year.
Briscoe Group’s sporting goods (Rebel Sport) sales lifted by 0.46% from last year's half to $139.85 million, while its homewares sector (Briscoe Homeware) sales lifted by 0.28% to $228.74 million.
The group’s net profit for H1 2023 was $42.75 million - just under $3 million less than the same time last year.
Despite the dip in profit, Briscoe Group managing director Rod Duke said this is pleasing considering the tough macroeconomic environment.
“The team have done a great job in continuing to advance initiatives important for future growth while, at the same time, maintaining focus on the business-as-usual imperatives of driving sales and controlling costs.”
Duke cited new and refurbished stores, key shifts in its online delivery model, and the inclusion of new brands across its portfolio for the overall lift in revenue.
The company opened a new Rebel Sport store in Ashburton, New Zealand in April, in conjunction with the relocation of an existing Briscoes Homeware store.
Duke said both stores are performing well within the local catchment.
“In addition, three full-store refurbishments were completed during the period at; Briscoes Homeware Whangarei, Rebel Sport Taupo and Rebel Sport Manukau,” Duke said. “There are at least another three store refurbishments planned for the second half of the year.”
The group is continuing to introduce new products online which are shipped direct from suppliers. Duke said sales continue to build from this initiative, “from which we expect sales to exceed $10 million this year and we’re excited about the future opportunity from the momentum it’s generating.”
The group’s online business represented 18.33% of Group sales as of July 30, 2023.
Duke said the company is continuing to invest in both the front and back-end platforms with various initiatives including the implementation of a new product information system, the introduction of enhanced online buying guides connected through QR codes for in-store customers, an improved reviews platform, and the introduction of a new shipping platform to improve courier and fulfilment productivity efficiency.
Rebel Sport also onboarded New Zealand-born streetwear brand Huffer to 11 of its stores, with further rollout plans for the rest of 2023. There are 43 Rebel Sport stores across NZ.
Briscoe Group is also leveraging retail media across its in-store network and online platform. During the first half, Duke said the group successfully deployed digital marketing screens across all Briscoes Homeware and Rebel Sport stores.
“This initiative provides existing and new supply partners with the opportunity to showcase a range of product communications direct to our customers,” Duke said. “This approach also encompasses our online channel where we see great opportunity to enhance value across our customer database and also web traffic.”
Meanwhile, Briscoe Group’s inventory levels were $120.21 million as of July 30, up from $113.00 million at the same time last year.
While this includes inventory for the new Rebel Sport store opened by the group in April as well as additional inventory purchased relating to major sporting events during 2023, Duke said the majority of the increase reflects significant supply chain cost increases.
“The actual increase in units held was less than 1%,” Duke said. “We continue to work closely with our supply partners in relation to optimising the group’s inventory position.
Duke said the company remains cautious amid ongoing uncertainty in the retail environment, particularly with economic conditions, consumer sentiment, cost pressures, higher interest rates and political uncertainty given the upcoming Federal election in NZ.
“As previously reported, we expect it to be difficult for the group to replicate last year’s full-year record net profit after tax (NPAT) result of $88.4 million. However, this first-half performance against the widely reported retail slowdown gives me great confidence about our ability to produce a solid second-half result."