New Zealand’s Briscoe Group subsidiary Rebel Sport has reported a net profit after tax (NPAT) of $36.7 million for the financial year ending January 29, 2023.
This is a drop of $1.5 million on the prior corresponding period.
Briscoe Group MD Rob Duke cited pandemic challenges and rising economic headwinds affecting foot traffic and consumer demand.
“At the same time, we faced the need to manage increases in operational costs and the cost of goods sold, with the resulting stress on margins,” Duke said.
Despite the dip in net profit for its sporting goods subsidiary, the Group recorded a total NPAT of $88.4 million, buoyed by a rise in sales of $26.7 million in its Briscoe Homewares subsidiary to $487.5 million
Rebel Sport NZ also recorded a rise in total revenue for the year of $14.8 million to $298.3 million.
Total sales for the Group in 2022 were up $41.4 million to $785.5 million.
“The achievement of record annual earnings against a backdrop of growing pressure on both revenues and costs was very noteworthy,” Duke said.
“As indicated in the Board of Directors’ Review, it reflected our ability to adapt quickly in the retail environment, and to ensure that we present the strengths in our product offering and trading platform in a way that continues to appeal to our customers.”
The rise in revenue performed stronger in the second half of the year, Duke added.
“The second half performance is particularly strong when the deterioration through the year in economic factors affecting consumer confidence, and subsequently retail spending, are taken into account.”
Looking ahead, Duke said the Group expects New Zealand retail to remain highly sensitive to uncertainty around the economy, consumer sentiment, cost pressures, high interest rates, and political shifts. The country will see a general election later this year.
“Measures to limit the impact of cost increases will be a feature of the year, and we certainly do not underestimate how challenging trading could be,” Duke said.
“The Group maintains a set of highly positive fundamentals including the strength and resilience of its business model, the strong fit of a ‘big box’ trading platform within the modern retail environment, its market profile in homewares and sporting goods, and its ability to offer customers a wide range of trusted international brands at great value.”