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Macpac outperforming expectations for Super Retail Group

Thursday 15th August 2019

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Macpac is still delivering better results than expected for its Australian owner Super Retail Group, which wants to keep rolling out the outdoor equipment chain across Australasia.

The retailer's sales were up 7.3 percent on a like-for-like basis at A$119.3 million in the year ended June 30, and delivered earnings before interest, tax, depreciation and amortisation of A$17.4 million, more than the NZ$16 million management budgeted for. 

That was the first full year for Macpac under the Super Retail umbrella since it was bought in March 2018 for NZ$144 million and joined Supercheap Auto, Rebel Sport in Australia, and boating, camping and fishing chain BCF.

Since then, Super Retail has opened 16 more Macpac stores and rebranded nine Ray's sites under the Macpac badge. Of its 70 stores, 34 are in Australia. 

"The group believes Macpac is now well-positioned to grow profitably and to expand its store network in Australia and New Zealand," Super Retail's annual report said. 

Macpac's sales in the first six weeks of the current financial year are 3 percent below where they were a year earlier, which the company said reflected a shift in the timing and duration of its winter promotions. 

Macpac's annual sales growth was slightly behind that of larger rival Kathmandu Holdings, which lifted revenue 9.6 percent in the year ended July 31, due largely to faster sales growth in Australia. 

New Zealand government figures show the annual value of recreational good retail sales rose an annual 2.4 percent to $2.42 billion in the March year, while the volume of sales were up 2.7 percent. Apparel sales values rose 4 percent to $3.86 billion on a 4.5 percent lift in volumes. 

At a group level, Super Retail reported an 8.6 percent increase in statutory profit to A$139.2 million, as smaller restructuring costs more than offset a higher bill to remediate underpaid staff and losses on some divestments. Group sales rose 5.4 percent to A$2.71 billion. 

The group's namesake Super Cheap Autos - which delivers the bulk of its revenue - reported strong growth across its 45 New Zealand stores, where sales climbed 35 percent to A$184.3 million. That far-outpaced the 3.5 percent increase in revenue to A$2.53 billion from its 278 Australian stores. 

New Zealand's annual retail spending on motor vehicles and parts decreased 1.2 percent to $13.18 billion in the March year on a 0.5 percent dip in the volume of sales. 

(BusinessDesk)



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