SEE YOU OUT THERE
Torpedo7 is the ultimate store for outdoor adventures in New Zealand. From activewear and hiking boots to all your camping, bike and snow gear, and the passionate know-how of our team, Torpedo7 has everything you need to get outdoors.
It has been a very challenging year for Torpedo7, with a global demand slowdown for bikes after a spike during COVID-19 lockdowns. A wet summer and late ski season impacted seasonal categories like water sports, camping and snow gear.
Profitability was compromised with decreased margin and increased cost of doing business, resulting in an operating loss for the year of $22.2 million. As at FY23 year end we have provided for an inventory impairment of $4.6 million against Torpedo7 to manage excess and aged stock. A recovery plan is in place for the business and this will be a major focus in FY24.
Despite the challenges in bike and seasonal impacts, Torpedo7 has seen pleasing growth across other categories in FY23, with 42.8% growth in footwear, 18.8% growth in athletic leisure wear and 26.9% growth in electronics. Our Torpedo7 private label ranges continue to grow and now make up more than 34.0% of total sales.
Customers continue to enjoy the knowledge and advice from our outdoor expert team members, with our customer Net Promoter Score increasing by 3 points to 71 in FY23.
In August 2023, our Torpedo7 support office, store leadership, logistics and fulfilment teams joined the rest of the Group in transitioning to agile ways of working, integrating the business under existing support structures and product purchasing into a new Sports and Adventure customer mission tribe.
The shift to agile will bring our Torpedo7 brand and teams closer to the Group to unlock efficiencies, grow our profitability and deliver a better customer experience. We also began the process of migrating Torpedo7 to our new Enterprise Resource Planning (ERP) software system. The new platform will replace and modernise our legacy systems, streamline our business operations and improve the experience for our customers.
With Torpedo7’s passion for the outdoors and our local environment, we provide support through our community partnerships. This year, with the help of our customers, we raised more than $77,000 for our community partners including Hillary Outdoors Education Trust, to help young people experience the outdoors and build important life skills. In June, our stores and customers also raised $8,288 for St John’s Annual Appeal.