Long4Life has reported R3.6-bn revenue for the financial year ending 28 February 2019, of which the Sport and Recreation division (Sportsmans Warehouse, Outdoor Warehouse and Performance Brands) alone contributed R2.1-m (59%).
In the Sport and Recreation Division total retail sales grew 8.4% (4% same store) in the 11 months reported. Sportsmans Warehouse sales were up by 10.1% (4% on a like-for-like basis) and Outdoor Warehouse sales increased by 3.3% (4.1% like-for-like). “[Outdoor Warehouse] sales growth was slightly hamstrung by price deflation while the shorter than normal December holiday restricted customers’ traditional camping vacations and, consequently their demand for outdoor merchandise,” the company explains in its financial report.
The wholesale division, Performance Brands, reported that external sales were down by 2.5% from the previous year, but sales to the group’s own retail divisions increased by 0.5% year-on-year. It manufactures and distributes First Ascent, Capestorm, Second Skins, OTG Active and African Nature brands. The division was also recently awarded the exclusive distribution rights for Speedo swimwear, effective January 2020. Brand ID is the current distributor of the swim brand.
In the Sport and Recreation division, the average trading area increased by 3.5%, compared to the previous year, and price deflation was 0.9% across the retail businesses. At the end of the financial year there were 43 Sportsmans Warehouse stores and 26 Outdoor Warehouse stores in total.
During the past year, Sportsmans Warehouse started introducing a new mall-based concept for their stores, with a smaller footprint that still offers an authentic and recognisable shopping experience, the company reports. Three of these stores were opened during the financial year in Rosebank Mall, Sandton City and Eikestad Mall in Stelllenbosch. All stores will feature these new design elements and fixtures within the next three years.
“The divisions, due to seasonality, had significant operating leverage in the second half of the financial year,” the company states in its financial report. “Beverage consumption, as well as demand for beauty treatments, increases substantially in the summer months. The Sport and Recreation retail stores experience significant increase in trading over the holiday and Christmas periods.”
The Beverages division consists of Inhle Beverages and Chill Beverages, while the Personal Care and Wellness division houses the Sorbet group and its various branches, Lime Light, and The ClaytonCare Group.