Ferret's Stock to Watch: REBEL SPORT LIMITED08:42, Thursday, 20...

Ferret's Stock to Watch: REBEL SPORT LIMITED
08:42, Thursday, 20 July 2006

A COMPANY KICKING GOALS WITH THE SOCCEROOS

Sydney - Thursday - July 20: (RWE Aust Business News)
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OVERVIEW
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Rebel Sport Ltd (ASX:REB) is on a wave with its sportswear,
but it's not on a board but a soccer ball, metaphorically speaking.

The Socceroos have helped it on the way to record earnings for
the full year, if the current trend continues and there is no reason why
it shouldn't.

The company has just reported a booming month for June that
helped lift group sales revenue 17 per cent to $371.2 million for the
twelve months ended July 1.

This including sales revenue from the Glue lifestyle stores.
Sales on a same-store basis increased by 10.8 per cent.

Total group sales for the June quarter increased by a stunning
25.2 per cent, and 18.9 per cent on a same-store basis.

The Soccer World Cup and the season commencement of the major
football codes inspired a lot of Australians to support the Socceroos
and other teams by purchasing supporter wear from Rebel Sport stores.
This contributed to the very strong June quarter, directors disclosed.

During the twelve months ended July 1, Rebel Sport opened six new
stores located at Midland Gate and Rockingham (Western Australia),
Shepparton and Fountain Gate (Victoria), Carindale (Queensland) and Mt
Druitt (New South Wales).

"Our store in Campbelltown (New South Wales) was relocated
within the Macarthur Square Centre and our Penrith (New South Wales)
store was relocated to Penrith Plaza.

A further two new Glue stores were also opened in Tuggerah and
Penrith.

The Rebel Sport Darwin store was closed in April.

Rebel currently has 61 Rebel Sport stores and 10 Glue stores.

Negotiations on more Rebel Sport stores are underway, with six
new Rebel Sport stores expected to be opened during the 2007 financial
year.

In the December half year Rebel Sport posted a record
consolidated net profit of $12.9 million, a $2.8 million or 28.5 per cent
increase on the result achieved for the previous corresponding half year.

It was equivalent to 16.66c per share.

SHARE PRICE MOVEMENTS
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Shares of Rebel Sport fell 7c to $3.40 after touching a high of
$3.59 during the session on the back of its sales results. Rolling high
for the year has been $3.79 and low $2.05. Dividend is 12.5c to yield
3.68 per cent. Earnings per share is 24.27c on a p/e ratio of 14.01. The
company has 80.1 million shares on issue with a market cap of $278.1
million.

One of Rebel Sport's key strategies is acknowledging the work of
its staff, which it describes as the company's greatest asset.

Rebel Sport now employs more than 2,700 people in Australia.

All Rebel Sport team members undertake an intensive on-line and
face to face induction training course covering product knowledge,
merchandising and excellence in customer service.

The company has the most extensive on-line training facility in
Australia, RebelUni.

All team members at Rebel are encouraged to participate in
certificate 2, 3 and 4 aligned training programs.

The company runs a MDP program (Management Development Program)
that identifies team members to be groomed for store management roles.
Management is involved in extensive business skills training.

The company uses a Mystery Shopper system, involving independent
researchers posing as customers, to assess the key indicators of customer
service and product knowledge in Rebel Sport stores.

BACKGROUND
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Rebel Sport and group companies claim they are the leading
retailer of sporting equipment, apparel and footwear in Australia.

The company listed on the ASX on November 30, 1993.

Rebel Sport started from humble beginnings as a single store at
Bankstown, in Sydney's west, in 1985.

Rebel Sport has grown to become an extensive network of stores
located in every state and territory in Australia with the exception of
Tasmania.

The company is now a part of the Harvey Norman "stable" of
companies after it acquired a 55 per cent stake in the company via a
successful takeover offer in July 2001.

As a result of the takeover a former Harvey Norman Franchisee,
Stephen Heath, is now managing director with Gerry Harvey as chairman.

Rebel Sport is Australia's leading sporting goods retailer,
selling a wide range of the latest release, quality, branded sporting
goods at competitive prices.

It has changed over the last few years from a head office-driven
operation to a store-driven operation.

Rebel Sport's philosophy is that a store-based retailer will
always run its store better than any person or process directed from head
office.

Rebel Sport says that everything it does revolves around
providing its customers with the most compelling product offer possible.

Then there is Athleisure Pty Ltd (Trading as Glue Store).

Glue Store is a branded fashion retailer stocking the world's
best brands like G-Star, Diesel, Industrie and Mooks.

It won FHM Casual Wear Retailer Of The Year in 2002 and 2003.

The company trades in NSW and Victoria and is continuously
looking for expansion and offering exciting career opportunities to
young people.

ENDS