Retailer Briscoe Group is warning of a fall in half-year net profit after tax of up to 15 per cent.
In an announcement to the stock exchange today, Briscoe said the second quarter had been more difficult than the first.
After tax profit for the half-year to July
29 was expected to be up to 15 per cent lower than the $12.01 million in the first half of last year.
The second quarter difficulties reflected a later than normal start to winter, low levels of consumer confidence in the economic outlook and strong competition for consumers' discretionary spending, Briscoe said.
The first half performance also reflected the impact of two new homewares additions, Living & Giving and Urban Loft, both of which had highly seasonal trading patterns with profitability weighted to the second half of each year.
Despite the first half performance, Briscoe said it expected full year profitability to be no less than last year.
That prediction took into account the "particularly challenging" nature of the second half of last year.
For the year to January, Briscoe reported a net profit up 5.2 per cent to $26.05 million on sales revenue up 8.3 per cent to $372.08 million.
The group expects to announce its half year result by September 13.
Briscoe shares were down 6c at lunchtime today to $1.55, having ranged between $1.50 and $1.80 in the past year.
- NZPA
