Briscoe Group expects profit to rise despite margin pressure from Black Friday
Briscoe Group saw a “satisfactory” result for full year 2019, with group sales improving 3.34 per cent to $653 million, and an expected NPAT of approximately $64 million.
According to group managing director Rod Duke the business saw consumer spending patterns shift toward Black Friday, continuing a trend seen industry wide.
“We operate in highly competitive markets, and while the trend towards major event-based campaigns, such as Black Friday and Boxing Day, have wide customer appeal, they do come at the cost of gross profit percentage,” Duke said.
Despite this the group’s result will see gross profit above what was experienced the year prior.
“New Zealand retailing remains highly competitive, sensitive to continued cost and margin pressures as well as subdued consumer and business confidence.”
Briscoe Group operates the Briscoes Homeware, Living & Giving and Rebel Sport chains.
Over the 52-week period to 26 Jan, homewares sales grew 1.92 per cent to $410.9 million, while sporting sales grew 5.84 per cent to $242.1 million.
On a same-store basis, homeware sales increased 1.58 per cent and sporting rose 2.84 per cent.
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