Flat first half sales for Briscoe Group

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Briscoe Group managing director Rod Duke says the results are still a record first half for the company, despite the economic slowdown.
Photo: RNZ

Homewares and sport retailer Briscoe Group has reported flat first half sales, with gross profit margins under pressure.

Sales for the six months ended July rose a third of a percent (0.35 percent) to $369.2 million, with homewares contributing 0.28 percent sales growth and Rebel Sport reporting sales growth of 0.46 percent.

Briscoe Group managing director Rod Duke said the results were still a record first half for the company, despite the economic slowdown.

“To achieve positive sales growth for both homeware and sporting goods given the continued negative economic factors impacting consumer confidence and retail spending is a solid first half performance for the group.

“It’s encouraging to see a return to physical stores with the group’s bricks and mortar sales showing higher growth than online sales for the half.”

He said online sales represented 18 percent of total group sales.

“As previously reported, we expect it to be difficult for the group to replicate last year’s full-year record net profit after tax result of $88.4 million.

“In relation to the half-year ended 30 July 2023 we are confident of producing a half-year net profit after tax in excess of $42 million, compared to the $45.6 million reported for the first half of last year.”

He said first half profit margins were expected to be about 200 basis points down on the year earlier.

“Gross margin remains a major focus for the group, and we continue to see pressure as the impacts of the economic downturn are felt,” Duke said.

“Our goal for the full year remains to be able to show that the group can protect around half of the 633 basis gross profit margin points gained during the two years ended January 2021 and January 2022.”

He said the retail environment continued to be difficult and unpredictable to navigate from an economic perspective.

“The widely reported explosion in retail crime continues to have a significant operational as well as economic impact.

“Over the last two years the group has suffered seven ram raid attacks and at least 12 other significant break-ins causing substantial property damage and stock loss.

“Of even more concern, is the ever-increasing level of abuse and aggressive behaviour our store teams have to endure,” he said adding the company was investing more in security.

Briscoe Group was expected to report its half-year results on 13 September, which was expected to include an interim dividend.