Briscoe first half profit to rise by 10pc

File photo

Briscoe Group, the homeware and sporting goods retailer, says first-half net profit will come about 10 per cent higher than last year on the back of improved second quarter sales.

Net profit was at least $10.2 million in the six months ended July 31, up from $9.3 million in the same period previously, the company said in a statement today.

That's on a 4.8 per cent rise in second quarter group sales to $97.8 million compared to the same period last year, led by a 6.3 per cent improvement in sporting goods sales and a 4.2 per cent rise in homeware sales.

"Pressure on gross profit margin has remained strong during this second quarter reflecting competitive market pressures and tight inventory control to ensure optimal stock levels are met," said managing director Rod Duke, who owns 75 per cent of the company.

"Notwithstanding the continued tough operating conditions, group EBIT has tracked above last year during this first half and we expect this to be reflected in our results for the half year."

The company's shares were unchanged at $1.43, and have gained 6.7 per cent so far this year. That's in a day where the NZX 50 Index sank 2.4 per cent following global markets lower.

The improved results comes after sales in the first three months of the year were flat, a reflection of the tough retailing environment seen in the first quarter when the effects of Feb. 22 earthquake in Christchurch kept consumer spending at subdued levels.

On a same store basis, group sales were 8.1 per cent higher in the second quarter than the same period last year, although the company said figures were calculated on a different basis than in the first three months of 2011 as they accounted for the closure of eight Living & Giving stores as well demolition of the company's Salisbury Street store in Christchurch.

The July quarter sales figure takes unaudited sales for the half year ending July 31 to $194.1 million, an improvement of 2.1 per cent on last year's first half results, with sporting goods up 3.4 per cent and homeware up 1.5 per cent.

On a same store basis, first half sales rose 4.4 per cent on the same period last year.