Macpac revenue and profit fall as New Zealand demand softens

Macpac New Zealand has reported a drop in sales and profit for its 2025 full-year result. Photo / Richard Robinson

Outdoor clothing and camping equipment retailer Macpac has reported a drop in revenue and profit in its 2025 full-year result with the business’ Australasian head putting it down to poor market conditions.

In the 12 months to June 28, 2025, Macpac reported total revenue of $96.8 million, an 8.5% decrease from $110.4m in 2024.

Its operating profit decreased by $10m, falling from $14.3m to $4.3m.

But the biggest drop was in its net profit for the year, tumbling from $10.3m in 2024 to $3m in 2025, a 70% drop.

The business has 39 stores in New Zealand, 26 in the North Island and 13 in the South Island, but has a majority in Australia as part of the Super Retail Group with 64 stores.

The wider Macpac business, including the Australian stores, reported total sales of A$231.4m ($261.5m) for 2025, a 3.8% increase year-on-year.

Like-for-like growth of 3.7% in Australia was partially offset by a decline of 0.9% in New Zealand, although the New Zealand market recovered in the second half of the financial year.

Macpac’s profit before tax margin declined by 390 basis points, as a 30-point improvement in gross margin was more than offset by negative operating leverage, with the cost of doing business rising as a percentage of sales.

However, the group’s gross margin did improve by 30 points, maintaining promotional discipline despite the softer market conditions.

Inventory for the New Zealand arm also grew, rising from $26.8m to $35.1m.

Baselayers, midlayers, gear and accessories were among the strongest-performing categories for the business.

In contrast, demand for insulation products was weaker, with the overall mix of sales reflecting milder conditions prevalent throughout much of the period.

Macpac managing director Cathy Seaholme was approached for comment.

Macpac was ranked the best places for Kiwis to shop by Consumer NZ in September, with Consumer NZ’s Kate Harvey saying the brand topped its competitors “in all the categories we ask about, including perceived value and range of products available”.

Speaking of competitors, Macpac’s larger rival Kathmandu reported an increase in sales, although this was driven by stores overseas.

Kathmandu’s sales increased by 0.2% from $361.1m in 2024 to $361.9m in 2025.

Despite an 8.8% drop in year-on-year performance in the third quarter, the fourth quarter and winter trading period delivered a 2.5% rise in performance from a year ago.

Australian sales increased by 0.2% year-on-year, while New Zealand sales were down by 2.3%. Both locations had positive sales growth year-on-year in the fourth quarter.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

• Listen and subscribe to the Today in Business podcast – the top headlines from the NZ Herald business team summarised and delivered by an artificial intelligence (AI) voice as an easily digestible recap.