Briscoe Group booked lower revenue and net profit last year amid challenging trading conditions.

The company’s revenue slid 0.1 per cent to $791.5 million as homeware and sporting goods sales dipped 0.1 per cent to $489.8 million and $301.7 million, respectively.

Its net income plunged 28 per cent to $60.6 million, which includes a tax adjustment of $7.4 million due to taxation changes. Gross profit margin fell to 40.37 per cent.

Briscoe Group MD Rod Duke said the company’s full-year result was negatively impacted by Kathmandu parent KMD Brands’ decision not to pay any dividends during the year. Briscoe has a stake in that business.

“Last year the group received $2.9 million (pre-tax) from its investment in KMD Brands.”

Meanwhile, Briscoe noted that online sales accounted for 19.69 per cent of the group’s sales.

Moving forward, the company said it aims to stabilise its profit margin with various initiatives, including lower levels of clearance products, deeper analysis of promotional planning and implementing a new merchandise planning tool.

“Like all retailers, we faced margin pressure from a number of factors as the impacts of the ongoing
economic downturn continued to be felt,” said Duke.

“Looking forward, we do not underestimate just how tough trading will continue to be with the first half expected to be especially challenging. We expect this will see second-half profitability exceed that
produced for the first half in a return to a more normalised shape of profitability.”