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Outdoor gear brand Macpac has reported a 1.7 per cent lift in total sales to $107 million, driven mostly by store openings according to its parent company Super Retail Group.
Like-for-like sales for the brand increased by 0.1 per cent in the period, with growth in the number of transactions being offset by lower average transaction value.
Macpac’s Australian market had a like-for-like growth of 2 per cent, which was reportedly offset by a decline of 4 per cent in New Zealand, which Super Retail claimed was consistent with the broader consumer weakness being observed in that market.
“Footwear and base layers performed well,” Super Retail added in its results announcement this morning. “In insulation, consumer preference trended toward lower price points within the range.”
Macpac also continued to gain market share in Australia over the past six and 12 month periods amidst subdued overall category growth. Despite the modest sales lift overall, the brand’s gross margin declined by 20 basis points due to investment in logistics and negative mix.
“Promotional discipline was maintained despite the softer market conditions,” Super Retail added.
The gross margin slip at Macpac matched an overall margin slip for Super Retail Group – which also manages Rebel, BCF and Supercheap Auto.
Group gross margin decreased by 70 bps to 45.6 per cent, with normalised net profit after tax (NPAT) for the group down 10 per cent to $131 million.
Back to Macpac, the subsidiary recorded a profit before tax (PBT) decline to $2 million, with PBT margin decreasing to 1.6 per cent, “reflecting the lower gross margin and higher operating expenses due to the impact of inflation and ongoing expansion of the network ahead of the seasonally important Q4 trading period.”
Macpac’s drop in PBT added to a group-wide drop in the measure by 10 per cent to $186 million.
Meanwhile, active club membership at Macpac grew 8 per cent and club members represented 75 per cent of sales. Online sales of $20 million represented 18 per cent of total sales.
Macpac opened seven stores, closing three, resulting in 101 stores at period end.
Super Retail Group managing director and CEO Anthony Heraghty said the overall growth across the group is a pleasing outcome considering the challenging consumer conditions in the half, “especially in New Zealand.
“Super Retail Group delivered solid first half sales growth of four per cent - a pleasing outcome considering the challenging consumer conditions throughout the period, especially in New Zealand.
“Our brands maintained pricing and promotional discipline amidst pockets of elevated promotional activity in the market,” Heraghty said. “The business successfully navigated the peak trade period through strategic initiatives across supply chain, stock availability, merchandising and ranging.
“These efforts drove accelerated growth in the second quarter at BCF and Rebel.”