Homewares and sporting goods retailer Briscoe Group has seen a slight decrease in sales revenue and gross profit for the first half of this year, driven by weak consumer confidence in a challenging economic environment.
Sales revenue decreased from $372 million to $371.2 million year-on-year, with gross profit dropping from $159.8 million to $153.8 million, and its gross margin falling from 42.97 per cent to 41.43 per cent.
Briscoe Group’s net profit after tax was $29.3 million, impacted by salary and wage increases, general cost inflation, lower return on interest, and costs related to strategic projects.
“This half-year result represents another solid performance by the group in an economy which remains highly challenging,” said Dame Rosanne Meo, Briscoe Group chair.
“Recent economic indicators – including elevated inflation and unemployment – underscore the ongoing cost-of-living pressures and subdued consumer sentiment, placing additional strain on discretionary spending with no consistent signs of economic recovery.”
Online sales comprised 19.36 per cent of group sales, up from 18.77 per cent year-on-year, with the company completing its transition to a new online platform this August.
The company’s homewares segment reported sales revenue of $229.78 million, a gross profit of $94.2 million, and its net profit after tax was $14.7 million.
Rebel sports revenue was $141.5 million, gross profit was $59.5 million, and net profit after tax $13.2 million.
The group’s new Drury distribution centre’s construction is progressing as scheduled, with handover slated for April, and its Rebel X flagship concept store in Mt Wellington is due to open this November.
“Our goal this year is to stabilise gross profit, and while we’re progressing initiatives to support this, the pace of economic recovery and consumer confidence will be critical,” said group MD Rod Duke.
“Optimising gross profit while maximising sales is a constant focus for the team, and they continue to do a terrific job in this relentless environment. Looking ahead, we remain cautious about the retail environment,” said Duke.
“In the absence of a clear uplift in consumer confidence, the ongoing economic headwinds may result in a full-year NPAT closer to $60 million.”
