Stalwart retailer Briscoe Group has shared its first-quarter earnings, citing myriad obstacles in a challenging retail environment.

The operator of Briscoe Homewares, Rebel Sport NZ and Living & Giving recorded sales of $180.8 million, an increase of 1.4 per cent year-on-year. The group’s homeware segment saw a 1.98 per cent increase, while sporting goods sales increased by 0.5 per cent. 

“The first quarter represented a satisfactory start to the new financial year, particularly through February, with trading outcomes in line with our expectations,” group MD Rod Duke said.

“As the quarter progressed, escalating conflict in the Middle East placed renewed pressure on fuel prices, contributing to heightened inflationary concern, increased economic uncertainty and a further dampening of discretionary consumer spending. This sudden shift in sentiment had a noticeable impact across the broader retail sector during the latter part of the quarter.”

Duke also mentioned the impact of severe weather – like Cyclone Vaianu – on foot traffic across its stores.

“Looking ahead, we acknowledge that retail conditions remain challenging in the near term, largely reflecting the heightened uncertainty arising from the recent escalation of conflict in the Middle East and its flow-through impact on consumer sentiment,” he added.

“Should geopolitical tensions continue to ease over the coming months, we are cautiously optimistic that the recovery which was beginning to emerge as we commenced this current financial year could resume, supporting a return toward a more favourable retail environment through the second half of the year.”

Briscoe Group said it will continue to monitor its costs and inventory, while protecting its margins through this uncertain period.