Covid 19 coronavirus: Briscoe Group sales slashed by level 4 lockdown

Briscoe Group's managing director Rod Duke. Photo / Mark Fryer

The Covid-19 level 4 lockdown slashed Briscoe Group's quarterly sales by more than a third, despite a doubling of the firm's online trading.

Managing director Rod Duke said that up to March 24, just before the level 4 lockdown took effect, group sales had been 4.2 per cent higher than the equivalent days a year earlier.

The impact of the lockdown, which started at 11:59pm on March 25, was "significant," with sales for the quarter ended April 26 falling to $97 million, 35.6 per cent lower than the $150.6m achieved in the same period last year.

Briscoe Group, however, was able to offer a condensed range of items during level 4, which ended on Tuesday, April 28, and said online demand doubled.

Duke is optimistic the group's online sales will continue to grow under level 3 restrictions now in place, as it can now offer the full range of products available at its Briscoes Homewares, Living & Giving and Rebel Sport stores, albeit online only.

Briscoe shares were unchanged at $3.15, having fallen almost 19 per cent so far this year.

Duke had previously said he would not take a salary until at least the end of July 2020 while the senior management team agreed to a freeze on any increases in the same period.

This week, the board and senior management agreed to a temporary reduction in fees and salaries of 20 per cent, effective this month.

Duke said the government's wage subsidy of $11.4m supported Briscoe's ability to pay the team's normal remuneration throughout the level 4 lockdown.

The recent salary reduction by senior management "allows us, at this stage, to continue with full pay for the rest of our team and with no redundancies incurred," he said.

Looking ahead, he said it's difficult to accurately forecast the full financial impact of Covid-19, given the uncertainty as to how long stores will remain closed, as well as the ongoing economic and social implications, he said.

"However, the effect on first half revenue will be significant, which currently is expected to result in only a modest profit to be reported for the first half."