Briscoe increases first quarter sales by 4.3%, says profit tracking ahead of last year
Sales rose 4.3 percent to $119.8 million in the first quarter ended April 26.
Hot Topic
Hawke’s Bay
See also: Briscoe Group says it hasn't caught the malady affecting other retailers
Briscoe Group [NZX: BGR] increased first-quarter sales and margins across its homeware and sporting goods retail chains and said profit is tracking ahead of the same period last year in a "highly competitive" market with "relentless promotional activity".
Sales rose 4.3 percent to $119.8 million in the first quarter ended April 26, Auckland-based Briscoe said in a statement. Excluding the opening of two new Rebel Sport stores in Paraparaumu in December and Christchurch in March, sales rose 3.4 percent, it said.
Briscoe's homeware and sporting goods chains both increased gross profit percentages compared with the same quarter last year. The retailer is boosting profits after enhancing its inventory management, introducing new store technology to manage stock, improving marketing, refining the quality and breadth of its product ranges and improving store layouts. It is also benefiting from foreign exchange cover taken out last year when the New Zealand dollar was significantly stronger against the US dollar, it said.
"Briscoe Group has made a very positive start to the current financial year," said managing director Rod Duke. "Increased sales and margin performance across both homeware and sporting goods has resulted in group profit tracking ahead of last year."
First-quarter homeware sales increased 0.5 percent to $73.1 million from the year earlier period, the company said. Its sporting goods sales increased 11 percent to $46.7 million. Excluding the impact of the two new store openings, sporting goods sales increased 8.4 percent, it said.
Briscoe Group is expected to increase annual profit by 5.4 percent to $41.4 million as sales rise 5.6 percent to $535.4 million, according to analyst estimates compiled by Reuters.
The company's shares last traded at $2.90 and have slipped 2.4 percent so far this year. The stock is rated an average 'hold' according to three recommendations compiled by Reuters.
(BusinessDesk)
Tina Morrison
Wed, 06 May 2015
Wed, 06 May 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Briscoe increases first quarter sales by 4.3%, says profit tracking ahead of last year
47436