Briscoe Group’s bumper half-year result

Briscoes1Briscoe Group has reported a half-yearly revenue increase of 4.27 per cent to $292.2 million, eclipsing last year’s result for the same period of $280.3 milllion.

Briscoe’s homeware segment increased sales by 4.53 per cent during the period and the sporting goods segment by 3.83 per cent.

On a same-store basis, the group’s sales for the half-year were 2.42 per cent ahead of the same period last year.

The same-store calculation adjusts for two new Rebel Sport stores opened by the Group at Petone (April 2017) and Kerikeri (February 2018), the new Briscoes Homeware stores opened at Rangiora (September 2017) and Glenfield (December 2017), and also for three store closures being the Lower Hutt Rebel Sport and Briscoes Homeware stores (April 2017), and the Living & Giving Store at Riccarton (March 2018).

On a same-store basis, homeware sales increased by 2.22 per cent for the 26 week period while sporting goods sales were 2.77 per cent ahead of last year.

“This second quarter has produced a reversal in form across the two trading brands when compared to the first quarter,” said Briscoe’s managing director, Rod Duke.

“Our homewares segment has rebounded strongly from a fairly modest first quarter sales performance to deliver same-store growth of over 4 per cent while the sporting goods segment found the second quarter more difficult than the first, largely as a consequence of the positive incremental sales impact of at least $1 million experienced during the British and Irish Lions’ tour of New Zealand during June and July last year.”

Briscoes’ online channel was also up over 20 per cent compared to last year and is now approaching 9 per cent of total Briscoe Group sales.

“We expect gross profit margin percentage to finish ahead of that produced for the first-half of last year,” said Duke.

“Our bottom line profit for the first-half will include the impact of an additional tax expense incurred compared to last year as a result of the interim dividend, received from our Kathmandu investment, not being imputed for New Zealand shareholders.

“New Zealand retailing remains highly competitive and retailers’ profit margins continue to be tested by declining consumer confidence, record-high fuel costs and increased wage pressures.”

Despite these headwinds, Duke said the group’s profit continues to track marginally ahead of last year and anticipated this being reflected in an increased half-year profit announcement, expected to be released on September 20.

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