Rebel Sport in New Zealand has reported a 0.44 per cent nudge up in sales for the fourth quarter to January 26, 2025.
This is a slight turnaround in Rebel NZ’s full-year sales, which dipped by 0.06 per cent, with a similar full-year sales drop seen in its parent company Briscoe Group overall.
Full-year sales for Briscoe Group were NZ$719.5 million (~A$651 million), just down from NZ$720 million in the prior year.
Briscoe Group managing director Rod Duke said delivering a sales result that is 99.94 per cent of the group’s record sales last year, amid a challenging local economic backdrop, is quite an achievement.
“Whilst current sales growth is at modest levels it is important to recognise this year’s level of sales represents a 21.20 per cent increase since the year immediately prior to Covid (year-ended January 2020) or 3.92 per cent compound average growth across the same period,” Duke said.
Alongside group sales, Briscoe’s gross profit margin has also been – “and remains” – under significant pressure. Duke projects that full-year gross margin percentage is expected to be around 200 basis points lower than last year’s margin of 42.40 per cent.
However, Duke added this will still represent a gross profit margin around 100 basis points in excess of the gross margin delivered for the year immediately prior to Covid.
Duke also expects the group’s full-year net profit after tax (NPAT) to be in line with its recent guidance – around $66 million.
“This will be a solid result given the economic backdrop through which New Zealand retail has had to navigate,” Duke said. “The NPAT guidance excludes the previously announced one-off, non-cash tax adjustment of NZ$7.4 million booked as a result of changes to tax depreciation on commercial buildings enacted by the Government during 2024.”
Meanwhile, Duke said particular focus has been placed on the level of sporting goods seasonal inventory at Rebel Sport NZ.
“Inventory and cost management remains a key focus for us and despite intense sales pressure the team has improved both stockturn and the quality and value of closing inventory which, when finalised, should be around $5 million less than the previous year,” he said.
Briscoe Group is also in the process of re-platforming its online business during 2025 in a bid to further bolster online growth, which now represents 19.69 per cent of total group sales.
“We are committed to investing in critical business initiatives and our significant strategic program remains on track and on budget,” Duke said.
“We believe the difficult retail environment will continue into the 2025 calendar-year and expect the group’s first half to be especially challenging.
“However, the exciting strategic initiatives and incredibly talented team positions the group well to continue to optimise profitability as and when the economy recovers.”