Briscoe Group made an $84m profit while The Warehouse and Kathmandu are in decline. Its owner, Rod Duke, reveals his secret formula for managing stock and avoiding debt. Video / Carson Bluck
Briscoe Group has released a positive third-quarter result, despite economic pressures affecting the retail industry.
Unaudited group sales of $546.1 million were half a per cent down the same period last year.
However, recent Labour Day sales will be recorded in the November accounting period instead of October, contributing toa half per cent increase.
Briscoe Group managing director Rod Duke thanked his team for their resilience in a demanding trading environment.
“To post positive year-to-date (adjusted) sales growth across both the homewares and sporting goods segments, in this retail market, is an outstanding achievement,” he said.
“We remain hopeful that the recent decreases in the OCR will improve consumer confidence and increase retail spend for the final crucial quarter of our financial year.”
Briscoe Group managing director Rod Duke is cautiously optimistic as the business heads into the fourth quarter, reporting consistent results in Q3 as other retailers struggle. Photo / Dean Purcell
Homeware sales for the year to date grew by 0.36% while sporting goods grew by 0.8%.
Online sales as a mix of total group sales also rose in the year so far to 18.91%, up from 18.67% last year.
Duke believed the struggles facing other retailers had been evident for the past five years or more, but that did not mean Briscoe wasn’t trying incredibly hard.
“I have to tell you to get 101% of last year’s number, it is tough.”
He thought group net profit after tax (npat) would fall for the first time in the range of $70-$77 million for the full year, but he was not sure.
That reflected the high level of trading uncertainty expected across the fourth quarter, which traditionally produced more than 30% of the group’s sales revenue.
“With the most recent events in the United States, that could all change quickly if the new administration in America suddenly jumps up and goes, okay, look I’ll give China a 30% tariff, for everyone else 20%.
“That would be absolutely catastrophic for this country.”
Looking towards the end of the year, he was hopeful for a strong festive trading season with Black Friday promotions right around the corner.
He believed Briscoe Group was probably the biggest beneficiary in New Zealand thanks to its discount operation model, rather than an everyday low-price model.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
