Briscoe Group Limited - holding company for Rebel Sport New Zealand and Briscoe Homewares - has boosted its net profit after tax (NPAT) for the year ending January 29, 2023, buoyed by technology updates across sales channels.
For the year, Briscoe Group reported an NPAT of $88.4 million, up from $87.9 million in the prior corresponding period, with Rebel Sport making up 40% of total NPAT to $36.7 million against its sister brand Briscoes Homewares ($47.4 million).
However, NPAT for Rebel Sport dropped on the prior corresponding period, which was then at $38.2 million.
Sporting goods sold by the brand accrued a total sales revenue of $298.3 million, with homewares bringing a revenue of $487.5 million. This is up on last year, of $283.5 million for sporting and $460.8 million for homewares.
Briscoe Group MD Rod Duke said that a number of initiatives across its sales channels continued to benefit the Group’s profitability. Its sales channels include 43 Rebel Sport stores, 48 Briscoes Homewares stores, and an online store for each.
The initiatives include expanding of new products online, which are shipped direct from suppliers to customers; continued development of Emarsys, a personalised database communication tool; and the introduction of Tableau business intelligence dashboards throughout the Group’s network.
Alongside this is the creation of a new on-shelf availability tool for use across its total store network; stock processing efficiencies in-store and at its distribution centre, and e-receipts being trialled at a small group of stores.
“We have also commenced in-store trials in relation to electronic shelf labelling in both Briscoes Homeware and Rebel Sport,” Duke said.
Meanwhile, its total inventory dropped $1.7 million to $117.8 million at year-end, with Duke saying the group had a strong focus on costs during the previous year.
“While the value of inventory has decreased around 1%, the volume of inventory we are holding has actually decreased by around 11%,” Duke said. “This lower level of inventory is a significant advantage for the business as we enter a more subdued retail cycle than we have seen for a number of years.
“Initiatives in relation to our inventory ordering processes - refining how, when and what we purchase, as well as improving other inventory measures such as in-store availability, slow moving items and stock obsolescence - are all critical to optimising our inventory management as well as protecting the gross margin.”
Elsewhere, the Group’s online revenue represented 18.97% of total sales for the year ending January 29, 2023. The Group reported that this is below what was achieved last year, which saw enforced store shutdowns, but said it was a significant step-change from the pre-COVID sales mix of around 11%.
The Group said it implemented initiatives in its online space to enhance performance, including a new product embellishment system to improve product content display, a new global fit tool called Fit Analytics for its sports apparel brands, and Click & Collect.
“We continue to focus on progressing our strategic initiatives, which we see as critical to protecting the foundation for growth moving forward,” Duke said. “Many of the initiatives are now embedded as ‘business as usual’ contributing to sales, gross profit and the Group’s bottom line.”
Duke added that New Zealand retail in general is expected to remain highly sensitive to ongoing uncertainty around economy, consumer sentiment, cost pressures, high interest rates and political uncertainty given the upcoming general election.
“We do not underestimate just how challenging trading could be, and currently expect it to be difficult for the Group to replicate this year’s record profit result,” Duke said. “However, what is certain is the talent and dedication across our entire team to offer New Zealanders the best shopping experience possible and to deliver continued strong performance.”