Rebel Sport, e-commerce drive solid growth for Briscoe Group

Rebel Sport Harbour Bridge
Rebel Sport performed strongly for Briscoe Group in the latest quarter.

Retailer Briscoe Group achieved a 15-per-cent increase in sales in the October quarter with sales through its Rebel Sport business performing best, up nearly 20 per cent to $62.6 million. Sales of homewares were up 12.28 per cent to $98.7 million.

Despite a nationwide lockdown earlier in the year and another covering Auckland during the third quarter, overall year-to-date sales are up by 2.35 per cent to $453.7 million. 

In September, Briscoe announced a half-year post-tax profit of $28 million and subsequent strong sales in the initial part of the third quarter promoted the company to repay an $11.5 million government wage subsidy and still remain in the black.   

“The significant increase in sales reported for the second quarter has continued through this third quarter,” said group MD Rod Duke in a results statement. “After trading interruptions due to Covid-19, we’re delighted in the way the group has rebounded to produce consecutive quarterly double-digit sales growth. Importantly, this augurs well for continued strong sales as we commence the crucial final quarter.”

Duke said the repayment of the wage subsidy will impact the second-half and full-year results, as will the recent announcement by Kathmandu that it will not be paying a dividend at all for its financial year to July. (Last year Briscoe Group received $6.8 million in dividends from its stake in Kathmandu). 

“However, notwithstanding this, I am optimistic that if the current trading momentum continues, we can still produce a full-year result to the end of January of which we can be extremely proud.

“The massive disruption to trading from Covid-19 has produced opportunities for us to re-think the way we construct our promotional activity and also how we process and manage the flow of inventory through the business. This is having a very positive impact on gross profit margin.”

Online performed strongly for Briscoe Group in the third quarter, accounting for 16.3 per cent of group sales. The company rolled out a click-and-collect service across its entire network which accounted for more than a quarter of online sales in the three months to October 25.  

“In addition, our strategic initiatives around enhancing our customers’ shopping experience, improvements within our supply chain and sourcing new revenue streams are progressing well and we expect to see some ‘quick-wins’ emerging before the end of this financial year,” said Duke.

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