Briscoe Group 1st-qtr sales slip 0.6%, margins improve in `competitive’ retail market
May 10 (BusinessDesk) - Briscoe Group Ltd. reported a 0.6% decline in first-quarter sales while saying its gross margins
have improved, helping lift earnings in the face of a competitive retail market.
Revenue was $96.3 million in the three months ended May 1, down from $96.8 million in the same period a year earlier,
the company said in a statement today. Sales at stores open at least 12 months rose 0.7%.
Shares of Briscoe have gained 11% this year, outpacing the broader NZX. The homeware and sporting goods retailer, which
is 75% owned by managing director Rod Duke, said sales in the latest quarter were dented by Anzac Day and Easter Monday
falling on the same day and from the disruptions stemming from the Feb. 22 earthquake in Christchurch.
“We’re happy with the result for this quarter, given the competitiveness of the retail market and the continued
unpredictability of sales levels,” Duke said. “Briscoe has made a positive start to the current year, with strong gross
profit margins mitigating the softer sales and improving the bottom line performance.”
The shares traded yesterday at $1.50 and are rated ‘hold’ based on the consensus of three recommendations compiled by
Reuters.
Sales from the retailer’s homeware stores fell 1.3% to $62.5 million in the first quarter while revenue from its rebel
sporting goods outlets rose 0.9% to $33.8 million. On a same-store basis, homeware sales fell 0.5% and sporting goods
sales rose 2.9%.
Duke said one Christchurch Briscoes Homeware store ceased trading after the quake, which required its building to be
demolished and rebuilt. The other six outlets are back in operation and “trading well after the initial disruption
caused by the quake.”
(BusinessDesk)