Sales growth has gathered momentum in the current half year for Super Retail Group (ASX: SUL) with its outdoor lifestyle chain BCF proving to be the star performer for the period by delivering double-digit gains.
The owner of the Super Cheap Auto, Rebel and Macpac chains has reported that group sales are 4.2 per cent higher in the first 44 weeks of FY25, with all four of its retail divisions reporting positive gains for the period.
But group sales picked up pace in the 17 weeks of the current half year to 4.5 per cent, aided by a strong Easter trading period.
The BCF outdoor lifestyle business posted the strongest growth for the group at 8.3 per cent for the year to date, with sales surging 10.3 per cent in the first half.
After posting sales of $879 million in FY24, the current growth rate edges the BCF business closer to $1 billion in annual sales.
Super Retail Group says its BCF superstores generate two to four times revenue per store compared to the average BCF store, with the group saying it has scope to increase its current portfolio of five larger format stores.
Super Retail operates about 774 stores in Australia and New Zealand across its four retail businesses which delivered $3.9 billion in sales in FY24 – up 2 per cent from a year earlier. The group is targeting 810 stores by the end of FY26.
The solid sales growth in the current year has been tempered by gross margins in the second half tracking below the same time last year, consistent with the year-on-year decline experienced in the first half of FY25.
On a like for-like basis, group sales in the current half have risen 3.1 per cent, which is a significant lift on the 1.8 per cent recorded in the first half of FY25, with the result largely driven by “ongoing positive momentum at BCF”.
“Despite a strong Easter trading period, retail conditions have otherwise remained subdued, particularly in New Zealand,” says the company.
“Macpac’s performance continues to be negatively impacted by its larger exposure to New Zealand. The business has been focused on managing inventory and ranging as it prepares for its peak winter trade season in the fourth quarter.”
Macpac has posted the weakest sales growth for the group so far in FY25 at 1.5 per cent, although growth has slowed to 1.3 per cent in the current half.
Super Cheap Auto sales are up 1.6 per cent for the year to date, but that has eased back to 1.4 per cent in the current half.
Like-for-like sales at Super Cheap Auto and Macpac are down 0.1 per cent each for the year to date.
Super Retail Group reports that its sporting goods retailer Rebel experienced an acceleration in like-for-like growth in the second half, despite a $5 million hit to net sales due to Cyclone Alfred. Rebel is up 4.4 per cent in FY25, and up 3.5 per cent on a like-for-like basis.
“Footwear continues to perform well, alongside positive contributions from health and wellbeing (equipment) categories,” says the company of Rebel's performance.
“Apparel performed well in Q3, though milder conditions as we approach winter have resulted in a slower seasonal transition during April.”
Super Retail has affirmed that it will incur duplicated operating expenses and project costs of $10 million in FY25 due to the transition from its existing distribution centre facilities to a new group facility in Victoria.
Total group and unallocated costs for the year are expected to hit $42 million, up from $36 million in FY24.
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