NZ shares rise, Kathmandu and Briscoes gain

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New Zealand shares hit a fresh record, with retailers Kathmandu Holdings and Briscoe Group gaining on positive earnings, while Xero hit a new high.

The S&P/NZX50 Index rose 5.44 points, or 0.07 per cent, to 7,753.75. Within the index, 30 stocks rose, 12 fell and eight were unchanged. Turnover was $225.4 million.

"We're up nearly 13 per cent for the year, a very good performance and we've set up some quite high expectations going into reporting season," said Mark Lister, head of private wealth research at Craigs Investment Partners. "People are watching the global reporting season continue. It's gone very well and our reporting season has kicked off in a minor way but really gets going the week after next. We're a bit thin on news flow ahead of those results coming out."

Freightways was the best performer, up 2.1 per cent to $8.15, while Vector gained 1.8 per cent to $3.40 and CBL Corp gained 1.6 per cent to $3.75.

Kathmandu Holdings rose 0.9 per cent to $2.28. Full-year profit rose as much as 13 per cent to $37.4 million and $38 million after a successful winter sales season and increased revenue from Australia. Earnings before interest and tax were in a range of $56m to $57m, from $50.9m in the previous year.

In March, the retailer beat its first-half guidance, having bounced back from an earnings slump in 2015 when an inventory build-up forced it into aggressive discounting at low margins to clear stock. Kathmandu shares have climbed 29 per cent in the past 12 months, outpacing a 6.4 per cent gain for the NZX 50 Index.

Xero rose 0.5 per cent to $27.80, marking eight consecutive sessions of gains and another record price.

"It was up quite strongly at one point in the day, it continues to run very well and has had a pretty strong week - up 7 per cent so far. People just continue to get comfortable with the story," Lister said. "It's up 59 per cent this year, in the top three stocks for the NZX50 and having another good day today."

TradeMe Group was the worst performer, down 4.2 per cent to $5.23. Auckland International Airport fell 1.2 per cent to $6.80 and Sky Network Television dropped 0.9 per cent to $3.32.

Outside the benchmark index, Briscoe Group gained 0.7 per cent to $4.09. The retailer saw slower sales growth than expected in the second quarter, which it put down to a late winter and the Lions rugby tour, but says it is generally happy with the first half of the year.

Revenue rose 2.6 per cent to $139m in the three months ended July 30 and gained 3 per cent on a same-store basis, the Auckland-based company said in a statement. Homeware sales across the group rose 0.8 per cent and sporting goods sales gained 6.2 per cent in the quarter.

"Briscoes has managed to prove everyone wrong for a long time and continue growing and expanding margins to a much greater degree than most people would've expected," Lister said. "They've certainly had a very strong run and still very good quality business."