Homewares and sports goods retailer Briscoe Group says sales have improved in the second quarter of this year despite ongoing economic headwinds.
In a trading update for the six months to July 31, the business reported sales of $367.9 million, an increase of 2.66 per cent on the $358.4 million of the same period a year earlier. During the second quarter, sales were up by 3.4 per cent to $191.7 million. Homewares sales rose by 3.29 per cent to $121.9 million while sales through its Rebel Sports chain rose by 3.84 per cent to $69.8 million.
Online sales continued to respond well, recording sales growth in excess of 22 per cent for the half and representing 19.4 per cent of overall group sales, compared with 16.2 per cent during the previous year’s first half.
Rod Duke, the group MD, said the business has experienced increased sales but the Omicron outbreak had a negative impact on foot traffic in brick-and-mortar stores during the first quarter.
“The second quarter was influenced by increasing negative economic sentiment on the back of significant cost of living increases including food and fuel price inflation, increased interest rates and falling house prices as well as the emergence of a second wave of Omicron cases.
“Supply chain disruptions have been widely reported now for some time, including factory delays, lack of shipping availability, port disruptions and increased costs. Our approach to secure inventory in advance continues to result in a relatively high level of stock compared to previous years,” said Duke.
He warned that gross profit margin percentage is under “increasing pressure” due to a general decline in the retail market conditions and ongoing supply chain disruptions.
The group expects the first-half net profit to be down 4 per cent compared to last year’s $47.5 million.