Briscoe Group shrugs off retail headwinds to fatten margins in third quarter

Briscoe's homeware stores accounted for most of the increase. Photo / File

Briscoe Group managed to fatten its gross margin and boost sales in the third quarter, despite the highly competitive retail environment.

The homeware and sporting goods retailer reported sales of $132.8 million in the 13 weeks ended October 28, up 2.6 per cent from $129.4m a year earlier. On a same-store basis, sales were 1.4 per cent higher.

Briscoe's homeware stores accounted for most of the increase, up 3.3 per cent to $84m, with its Rebel Sports sales increasing 1.5 per cent to $48.1m.

"The group has delivered satisfactory sales growth during this third quarter as well as increasing gross profit margin percentage in a highly competitive retail market," managing director Rod Duke said.

"We certainly do not underestimate the obvious effects we're seeing on the market from higher fuel prices and subdued consumer confidence."

Briscoe has continued to shrug off headwinds facing the retail sector, reporting a first-half profit of $29.3m in September and hiking its interim dividend for an 11th straight year. The retailer typically burns through cash in the first half, stocking up inventory for the end of year sales and paying a bigger final dividend.

Duke said he was confident heading into the final quarter, which spans the all-important Christmas and New Year period.

Sales in the year-to-date rose 3.8 per cent to $426m. Of that, homeware sales were up 4.2 per cent and sporting goods rose 3.1 per cent.

The shares rose 0.3 per cent to $3.35. Interests associated with Duke own about 78 per cent of the company. Last week, they bought 7,000 shares on market at $3.25 apiece.