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Severe drought and heat in Victoria and South Australia have taken the shine off an otherwise solid first half for Super Retail Group (ASX: SUL) which reported unaudited revenue of $2.2 billion in the six months to the end of December.
The figure compares with $2.1 billion a year earlier, but the group’s BCF division made little impression on the total as revenue lifted just 0.3 per cent during the period while like-for-like sales fell 1.6 per cent.
Super Retail is forecasting normalised profit before tax in the first half of FY25 to land between $172 million and $175 million – down from $184.4 million in the previous corresponding period.
While Super Retail Group CEO Paul Bradshaw says he is pleased with the broader group performance in terms of record group sales, he notes that BCF failed to match the solid sales performance a year ago when sales rose 7 per cent to $518.4 million for the six-month period.
“Fishing and marine categories were heavily impacted in the period by macro weather/environmental factors in Victoria and South Australia,” says Bradshaw, although he adds that BCF’s gross margins are “broadly in line with the prior year”.
While Super Retail has not specified the conditions, Western Victoria and South Australia were hit by severe drought water scarcity in the last few months of 2025 which is likely to have impacted water-based recreational activities.
BCF was a star performer for Super Retail Group in FY25, delivering a 7.9 per cent increase in sales to $951 million.
The underperformance of the typically high-growth BCF division was offset by solid gains across the group’s remaining businesses, with camping and adventure division Macpac lifting revenue by 13.1 per cent to $122 million, which was up 7.8 per cent on a like-for-lie basis.
Supercheap Auto boosted revenue 5.1 per cent to $813 million – with same-store sales up 3.5 per cent.
Sports goods business Rebel posted a 4.8 per cent increase in sales to $741 million, a result aided by 3.8 per cent like-for-like growth.
Bradshaw, who was appointed CEO in October to replace sacked CEO Anthony Heraghty, says Supercheap Auto’s revenue growth accelerated in the second quarter while maintaining gross margin largely in line with the previous corresponding period.
“Rebel delivered credible like-for-like sales growth in the half, cycling a strong Christmas trading period from the prior year,” he says.
“Realised gross margins were lower due to higher levels of promotional activity.
“Store network activity was high in the period, with associated costs further weighing on profit before tax.”
Super Retail opened seven Rebel stores during the period and closed six, while the company undertook three refurbishments and relocations.
“Macpac continued to realise strong like-for-like sales momentum; gross margins were impacted by clearance activity earlier in the half,” says Bradshaw.
The preliminary results announced today are still subject to audit review with Super Retail Group planning to release its half-year results on 26 February 2026.
Super Retail Group shares closed at $14.89, down 83c or 5.3 per cent.
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