Briscoe Group has posted a net profit after tax (NPAT) of $39.30 million for the year ending 25 January 2015.
The figure represents a 17 per cent increase on the $33.58 million for the previous year.
Group MD, Rod Duke, said the result is a record profit for Briscoe Group achieved in a challenging market.
“This year’s result represents a compound 16.1 per cent per annum increase in reported NPAT for the last four years and is attributable primarily to our continued focus on improving the way we do things in every area of the business,” said Duke.
Sales hit $507 million, an increase of 4.8 per cent on the previous year. On a same store basis, group sales for the year were 4.9 per cent ahead of the same period last year.
Gross profit margin increased from 38.5 per cent to 38.9 per cent off the back of a continued focus on inventory management, the impact of the new stock receipting technology, continued refinement of quality and breadth of product ranges, and the benefits of a strong New Zealand dollar.
Earnings before interest and taxation (EBIT) increased 17.4 per cent from $45.22 million for 2013-14 to $53.12 million for the 2014-15 year.
The number of homeware stores remained at 46, with total floor area increasing to 95,787sqm as a result of the relocations of the Wanganui and Coastlands stores.
A new Rebel Sport store at Coastlands and the relocation of the Wanganui store resulted in an increase in total floor area for sporting goods stores to 53,993sqm.
On a same store basis the homeware and sporting goods segments returned sales increases of 3.5 per cent and 7.8 per cent respectively.
“In October our Briscoes Homeware and Rebel Sport stores in Wanganui were relocated to a new purpose built configuration on a single location with shared back of house facilities,” Duke said.
“Our new Rebel Sport store in Coastlands, Wellington opened in December and is trading well, complementing the Coastlands Briscoes Homeware store, which was relocated to a larger adjacent site a month earlier.
“During the year a major refurbishment was completed at our Manukau Rebel Sport store that included the addition of the first Under Armour brand store in store concept in New Zealand. Store configurations were changed in four Rebel Sport stores to result in improved customer flows and better use of merchandising space.
“Eleven Briscoes Homeware stores have benefited during the year from storeroom reconfigurations to improve the efficiency and speed with which stock is processed.
“Our online business saw strong sales growth during the year. Going forward we will continue on improving the effectiveness, efficiency and capacity of the fulfilment resources to support future growth. We are also actively improving the look and feel of the websites to make it easier for customers to search and shop with us online, and taking other initiatives to improve the shopping experience for online research and online purchases.”
In the first half of 2015 two major refurbishments at Invercargill and Gisborne Briscoes Homeware stores will be completed, with the Hamilton and Taupo stores to be relocated to larger and better sites, with five new stores planned for the year ahead.
“Briscoes Homeware and Rebel Sport will open new stores in Westgate (Auckland) and Queenstown while a new Rebel Sport store will also open in Hornby (Christchurch). These major projects will provide customers with brand new, state of the art stores, which can be expected to result in improved customer experience and higher levels of profitability,” Duke said.
“While many commentators are talking up the outlook for the New Zealand economy we anticipate a continuation of recent challenges for retailers, however, we are confident that with the initiatives we have in place, our drive to continue to improve the way we do things in every area of the business, and the pleasing start we have made to the new financial year, we will continue to strengthen our position as New Zealand’s leading retailer of homeware and sporting goods.
“We are cautiously optimistic about the year ahead for Briscoe Group.”
