Briscoe lifts first-quarter sales 5.7%, fattens margins

Rod Duke
Briscoe Group 12-month price history (NZX.com)

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Briscoe Group [NZX: BGR], the homewares and sporting goods chain, said first quarter sales rose 5.7 percent on improvements in its marketing strategy and said it expects more profit growth with wider margins.

Sales rose to $114.8 million in the three months ended April 27, from $108.6 million a year earlier, the company, said in a statement. Sales at its Briscoes Homewares and Living & Giving chains rose 4.3 percent to $72.7 million, while sporting goods brand Rebel Sports increased 8.3 percent to $42.1 million. Managing director Rod Duke said profit was tracking ahead of 2013, without being specific.

"Despite the continued competitiveness across the retailing industry the gross margin percentage has tracked higher," Duke said. "Inventory is in good shape, costs have been well controlled and our online business continues to show pleasing growth in both sales and profitability."

In March, the Auckland-based company said it was "cautiously optimistic" about the year ahead, after posting a 20 percent gain in annual profit. The retail sector has been hit in recent times by increased competitiveness and aggressive promotions as the rag trade in particular tries to tackle the rise of online shopping and a high kiwi dollar, which has seen New Zealand bargain hunters shop offshore.

Briscoe will finalise its $1.5 million business interruption insurance claim after the 2011 Christchurch earthquake in the first half of its financial year. It said it had received a progress payment of $1 million, with the final negotiations on the balance of the claim to be included in its half yearly results.

The shares rose 2.9 percent to $2.45 and have declined 2.4 percent over the past year.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7500 0.0016 0.21%
AUD 0.9398 -0.0004 -0.04%
EUR 0.6615 0.0013 0.20%
GBP 0.4922 0.0011 0.22%
HKD 5.8129 0.0119 0.21%
JPY 89.6030 0.2470 0.28%

Commods

Commodity Price Change Time
Gold Index 1192.0 -1.200 2015-05-06T00:
Oil Brent 69.0 0.160 2015-05-06T00:
Oil Nymex 62.0 1.620 2015-05-06T00:
Silver Index 16.5 -0.080 2015-05-06T00:

Indices

Symbol Open High Last %
NZX 50 5765.3 5765.3 5765.3 -0.62%
NASDAQ 4956.7 4965.1 4939.3 -0.40%
DAX 11377.6 11457.9 11327.7 0.20%
DJI 17934.8 18019.8 17928.2 -0.48%
FTSE 6927.6 6974.8 6927.6 0.09%
HKSE 27567.6 27604.5 27640.9 -1.09%
NI225 19356.5 19461.1 19531.6 -1.30%