Briscoe beats forecasts with 2.8pc profit lift

File photo

Briscoe Group, the homeware and sporting goods retailer, lifted full-year profit 2.8 per cent as it ramped up its aggressive promotions to woo consumers in a subdued environment.

The Auckland-based company made a net profit of $21.6 million, or 9.9 cents per share, in the 12 months ended Jan. 30, compared to $21 million, or 9.7 cents, a year earlier.

Total sales rose 0.6 per cent to $419.3 million as the retailer took a small hit on its margins to stoke demand from households reluctant to increase their spending.

Stripping out a $2.5 million tax adjustment charge, the company's earnings were $24.1 million, beating the $23.5 million forecast from Forsyth Barr.

"We have increased the aggression of our promotions and customers have responded positively to the more creative ways in which these have been delivered," managing director Rod Duke said in a statement.

"While this predictably resulted in some initial margin erosion, our gross margin percentage for the second half of this year matched last year."

Local retailers have struggled over the past year as households have spurned spending in favour of repaying debt, and government data showed retail sales shrank more than expected in December.

Duke said the company expects to improve its position this year, but that will be reliant on a pick-up in the economy which is still volatile.

Briscoe will pay a final dividend of 6 cents per share, taking the annual return to 9 cents per share, or 88 per cent of net profit.

The shares rose 1.5 per cent to $1.38 in trading today, and have gained 0.7 per cent this year.