Rod Duke, Briscoe Group CEO, at the 2017 INFINZ awards. Photo / File
Rod Duke, Briscoe Group CEO, at the 2017 INFINZ awards. Photo / File
Briscoe Group said its third-quarter sales were higher on the year after a rebound in October and managing director Rod Duke said the strong jobs market and improving rural incomes bode well for the final quarter of the year.
Revenue rose 2.7 per cent to $129 million in the 13weeks to October 29 versus $125.6m a year earlier and was also up 2.7 per cent on a same-store basis, the Auckland-based company said in a statement. Homeware sales across the group rose 2.5 per cent to $81m while sporting goods sales rose 3.1 per cent to $47.9m.
Duke, who owns more than three-quarters of the company, said Briscoe Group was "especially pleased" with the sales growth achieved during October after a "subdued" September on the back of the election, bad weather and a slowing housing market. He said the strong employment market, low rates of unemployment and strengthening rural incomes bode well for retailers heading into the Christmas period.
New Zealand's unemployment rate dropped to 4.6 per cent in the three months ended September 30 down from 4.8 per cent in June and employment rose 2.2 per cent in the quarter to 2.59 million and was 4.2 per cent higher than a year earlier, Statistics New Zealand said in its household labour force survey yesterday.
Rural incomes have strengthened on the back of an improving milk price and earlier today Fonterra Cooperative Group reiterated its forecast 2017/18 payout of $6.75 per kilogram of milk solids plus earnings per share in a range of 45-to-55 cents, making the forecast total available payout of $7.20 to $7.30, before retentions. The final cash payout was $6.52 for the 2016/17 season for a 100 per cent share-backed farmer.
"We are certainly encouraged by the very strong sales growth experienced during October and gives us considerable confidence as we commence the crucial final quarter with sales and profit tracking ahead of last year as they have done for each of the previous two quarters," said Drury.
Briscoe Group said unaudited sales for the 39 week period from January 30 to October 29 were $409.2m, an increase of 3.9 per cent on the $393.9m reported for the first three quarters of last year.
Its shares last traded at $3.28 and have shed 19 per cent this year.
