Briscoe Group reported a modest sales gain in the second quarter, as growth at its sporting goods division more than offset the decline at homewares.
Group sales for the quarter ended July 27 edged up 0.25 per cent year-on-year to $192.9 million. This marked the third consecutive quarter of positive sales growth.
Briscoe MD Rod Duke said the group delivered the encouraging results despite challenging economic conditions, with consumer confidence seeing a slow recovery.
Rebel Sport delivered a sales boost of 4.84 per cent. Management said sales benefited from strong customer engagement generated by several significant sporting events.
“The Fifa World Cup, Auckland FC’s A-League triumph, the Warriors’ strong NRL campaign and the All Blacks’ successful home program in the Nations Championship all helped generate excitement and a stronger connection with sport among New Zealand consumers,” Duke elaborated.
At Briscoes Homeware, sales slid 2.7 per cent, reflecting lower-than-expected demand for heating products due to a milder start to winter, weaker luggage sales as geopolitical tensions affected travel, and ongoing pressure on discretionary spending.
Across the first half, group sales increased 0.79 per cent, with sporting goods up 2.56 per cent and homewares down 0.3 per cent.
The group expects gross profit margin to show further progress against the rate of decline experienced last year.
“This improvement reflects the benefit of initiatives implemented over the past 18 months, although retail conditions remain highly promotional and consumers continue to be very responsive to price and promotional activity. Ongoing geopolitical tensions in the Middle East have added to cost pressures and broader economic uncertainty,” Duke said.
Based on trading to date and subject to the completion of normal half-year closing processes, Briscoe expects net profit after tax for the first half to be not less than $27 million.
The group will release its half-year results on September 16, including the declaration of an interim dividend.
