3rd Quarter Sales to 29 October 2006

3rd Quarter Sales to 29 October 2006

The directors of Briscoe Group Limited announce that unaudited sales for the thirteen week period ended 29 October 2005 were $81.0 million, being 10.78% higher than the $73.2 million reported for the third quarter of last year.

On a same store, same day basis, the Group’s sales for the period were 7.07% above those for the third quarter of last year.

The gross margin percentage generated for the third quarter was below the margin for the same quarter last year (contrary to the trend established in the previous two quarters) reflecting the action taken in August to respond to softer market conditions.

Homeware sales (incorporating both Briscoes Homeware and Urban Loft) increased 11.10% to $54.9 million while sporting goods sales increased by 10.11% to $26.1 million. On a same store, same day basis, homeware sales increased by 8.68% for the quarter, while sporting goods sales increased by 4.17%.

The opening of Urban Loft in downtown Auckland City increased homeware store numbers to 39. With the relocation of the Panmure and New Plymouth Briscoes Homeware stores to larger premises, total homeware store area increased to 82,504 sq.m. Sporting goods store numbers increased to 25 during the quarter with the opening of new Rebel Sport stores in Wanganui and New Plymouth, and a Sports Authority outlet store, which was opened in August in Northcote on Auckland’s North Shore. These new stores and the major refurbishment of the Rebel Sport store at Panmure, resulted in total store area for this segment increasing to 45,223 sq.m.

The Group is on schedule to add a further two stores before the end of the year with the opening of new Rebel Sport stores in central Hamilton and Napier. In addition Briscoes Homeware will complete the relocation of its Napier store and a major refurbishment of the Taranaki Street, Wellington store by year-end.

The October quarter sales figure takes unaudited group sales for the period 1 February 2006 to 29 October 2006 to $248.4 million, an increase of 9.16% over the $227.5 million reported for the first nine months of last year. Homeware sales increased 10.82% during this period, while Sporting goods sales increased 5.82%.

Rod Duke, Group Managing Director, said, “Our sales performance was satisfactory having regard to the flatness of the retail market, but the actions taken have resulted in reduced margins for the quarter. The effect of this and the set up costs for the four new stores and two major refurbishments will have an impact on full year profit. While we are confident of returning a bottom line ahead of that reported for last year, the amount of increase will depend on the results achieved during the crucial Christmas trading period.

ENDS

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