Briscoe Group’s 26-week half-year sales to July 28 this year were $372.1 million, up by just 0.77 per cent on the $369.2 million reported for the same period last year.
The group’s sporting goods segment, which includes Rebel Sport NZ, grew its sales by 1.58 per cent, just ahead of its sister brand Briscoes Homeware which reported a 0.28 per cent sales lift.
“We’re pleased with the record sales we’ve produced for this first half,” group managing director Rod Duke said. “To achieve positive sales growth for both the second quarter and for the first half, given the current challenging economic environment which continues to impact consumer confidence and retail spending, is a significant performance for the group.”
Duke reported that the group’s online sales have also bumped up, with eCommerce sales representing 18.77 per cent of group sales compared to 18.33 per cent at the close of last year’s first half.
“Gross profit 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. “We expect the gross profit margin percentage for the first half to be around 100 basis points below last year.
“Our focus on inventory levels and controlling costs is constant. Inventory was below last year for both homeware and sporting goods, with the group closing around 10 per cent in total less than July 2023. We expect the total of store costs and support overheads to be largely in line with last year, despite ongoing cost pressure across much of the business.”
Duke added that the first half result will benefit from increased interest income of around $1 million (pre-tax) as a result of higher cash balances. However, this will be negatively impacted in comparison to last year as a result of KMD Brands failing to pay an interim dividend for this year.
Last year the group received $1.4 million (pre-tax) in interim dividends from its investment in KMD Brands.
“Throughout this first half we have seen how highly sensitive New Zealand retail businesses are to the ongoing challenges faced in difficult economic conditions. While the group will not produce a net profit after tax (NPAT) above last year’s first half NPAT of $42.7 million, we do anticipate an underlying trading NPAT in excess of $40 million.
“This is before the previously announced one-off, non-cash accounting entry of $7.4 million in relation to changes to tax legislation which will be booked for the half-year period.”
Briscoe Group is due to release its half-year results on 11 September 2024, including declaration of an interim dividend.