Briscoe reports higher sales but tips flat profit

Briscoe Group recorded a half year sales increase of 2.61 per cent, though overall profit is expected to be flat.

The homeware and sporting goods retailer yesterday announced unaudited sales for the half year ending August 1 to be $190 million, compared to $185.3 million for the same time last year. Homeware numbers were up 1.73 per cent, while sporting goods sales were up 4.47 per cent.

On a same store basis, overall sales were up 2.49 per cent.

But for the second quarter period (the 13 weeks ending August 1), Briscoe said sales were $93.3 million, 1.93 per cent lower than the $95.1 million reported for the same quarter last year.

Homeware numbers decreased by 3.64 per cent to $64.9 million, while sporting goods sales increased by 2.22 per cent to $28.4 million.

On the same store basis, overall sales were 1.96 per cent lower than the second quarter last year, with homeware going down 3.69 per cent and sporting goods going up 2.22 per cent.

Group managing director Rod Duke said pressure on sales intensified during the second quarter, reflecting the impact of the unusually mild temperatures experienced in April and May.

He said despite the tough operating conditions, earnings before interest and tax has increased, and the company expected half year results to show its ebit 30 per cent ahead of last year's.

"We're pleased with this interim result given the current retail environment. Sales and gross profit will be up on last year and costs have been well managed during this first six months."

Shares closed down 1c at $1.19 yesterday.

- NZPA