Briscoe Group, which operates stores selling household items and sports goods, lifted first-half profit 4.8 per cent and said it was satisfied with the result in the face of ongoing competitiveness and unusual weather conditions.
Profit increased to $28.6 million, or 12.73 cents per share, in the 26 weeks ended July 30, from $27.3 million, or 12.21 cents, in the year earlier period, the Auckland-based company said in a statement. That's ahead of the retailer's forecast last month for a profit of $28 million. The result includes a $1.6 million dividend from its 19.8 per cent stake in outdoor retailer Kathmandu Holdings, up from $1.2 million a year earlier. Sales rose 4.4 per cent to $280.3 million.
Managing director Rod Duke, who owns more than three-quarters of the company, said the first half was impacted by a number of challenges including fires in Christchurch in February, a major flood in Edgecumbe in April, a relatively late start to winter across the country, warmer than average temperatures in Auckland and the central North Island over key promotional campaigns in June followed by intense cold, snow and heavy rain affecting many parts of the country during July.
The group's gross margin slipped to 41.03 per cent from 41.89 per cent while its inventory value increased 8.4 per cent to $85 million as more stock is held for online retail and it was left with higher than anticipated seasonal stock due to the unusual weather conditions.
"Despite the ongoing competitiveness of the retail environment and the impact on winter-dependent categories with the late start to the colder months, overall we are satisfied with the positive sales and profit growth achieved for this first six months," Duke said.
