Briscoes posts slower profit growth
Home and sport retailer Briscoe Group may have just posted a slight increase in net profit, but it remains confident it can continue boosting profit despite flagging consumer confidence, rising costs and a lower dollar.
Briscoes posted a 2.7 per cent increase in net profit to $29.34 million in the six months ending July 29 from the $28.58 million from the previous corresponding period. The half-year results are unaudited.
The owner of Rebel Sport and Briscoe Homewares has raised its interim dividend for the 11th consecutive year of 8 cents per share, up from the 7.5 cents the previous year.
The earnings were generated on sales revenue of $293.20 million compared to the $281.08 million generated for the same period last year. On a same store basis the group’s sales for the half year were 2.46 per cent higher than the same period last year.
A $40.62 million earnings before interest and tax (EBIT) were generated for the six months compared to the $39.13 million for the same period last year, representing an increase of 3.8 per cent.
Rod Duke, group managing director, said the group is satisfied with the record sales and profit achieved for the period despite the ongoing competitiveness of the retail environment and increasing negative economic indicators testing consumer confidence.
Duke also announced the appointment of Fiona Stewart as the company’s new GM in Marketing and Strategy.
“Fi has a strong marketing background and will definitely help us to improve the way we focus on, and communicate with, our customers,” Duke said.
Duke said the economic outlook for the second half remains uncertain with flagging consumer confidence, increased industrial action, record-high fuel costs, increased wage pressures and a lower New Zealand dollar, all factors which will test retailers’ ability to maintain margins. But, he said, despite these challenges, they are confident they have the right programs in place to continue to maintain market share and to deliver the quality products, service and shopping experience to ensure improved bottom line profit and returns to shareholders.
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