Briscoe Group posts $73 million profit despite 'retail roller-coaster' year

Homewares and sporting goods retailer Briscoe Group has posted a healthy $73.2 million profit despite facing ongoing disruption from the coronavirus pandemic.

The group's net profit after tax increased by 17 per cent in the 12 months to January, and its revenue increased by 7.5 per cent in the period to $701.8m.

Its online sales in the period increased by almost 80 per cent and now account for 18.9 per cent of total group sales.

Board chair Dame Rosanne Meo announced that the directors have resolved to pay a final dividend of 13.5 cents per share.

Group managing director Rod Duke was particularly pleased about the result, given that it came amid the disruptions caused by Covid-19.

"Navigating the twists and turns encountered this year really has been like riding a retail roller-coaster," he said.

"It is a priority for the business that the momentum established this year continues as the basis for on-going growth and success."

Briscoe's full-year result includes an additional week's worth of trading this year due to change in reporting dates.

"We're delighted to be in a position to increase both the interim and final dividend payments, in addition to the recent special dividend paid to shareholders in January," Meo said in the NZX announcement.

The company said its gross margin dollars increased 19.2 per cent for the period with gross margin percentage increasing from 39.4 per cent to 43.7 per cent.

During the year, $27.4m of capital investment was made by the group, of which $18m represented development of property owned in Auckland, Silverdale and Invercargill.

It also advanced it plans for new stores during the year, including the relocation of Briscoes Homeware and Rebel Sport Nelson stores to bigger sites. It will open new Briscoes and Rebel stores in Silverdale in October.

"While the recovery across most of New Zealand retailing since the end of lockdown has been significant, the agility shown by the Briscoe Group team to adapt to and leverage the new trading conditions has also been nothing short of incredible," Duke said.

Meo said the outlook for the next 12 months of trade remained "uncertain" and "complex" but the group was confident the business was well-placed to deliver improved profit and future returns to shareholders.