Briscoe same store sales fall but profit outlook recovers

Battling retailer Briscoe Group today announced reduced full year same store sales but nevertheless upgraded its profit forecast for the period.

Briscoe said its same store sales for the year to January 31 were 6.62 per cent down on the same period last year. Same store sales at Briscoe's eponymous homeware chain were down 4.84 per cent, while sales at its Rebel Sports chain were down by 10.6 per cent.

However, managing director Rod Duke said that following a slow start to December, "Briscoes Homeware and Rebel Sport both achieved better than expected sales levels and gross profit margins over the Christmas period".

"Margins have continued to be strong through January and the directors now expect the Group tax paid profit for the full year to 31 January 2005 to be in excess of the estimated $17.5 million provided to the market on 17 December 2004," Mr Duke said in a statement to the NZX.

In December the group revised its full year profit forecast down to $17.5 million from $23.6 million a year earlier blaming a "highly competitive market" and the cost of opening new stores.

Today, the company said its unaudited sales for the three months to January 31 were $107.9 million, up 1.61 per cent on the fourth quarter last financial year. Briscoes Homeware sales were down 0.55 per cent but Rebel Sport sales rose 6.70 per cent.

The group's same store sales for the quarter were 6.23 per cent behind those for the fourth quarter of last year. The company added two new stores during the quarter.

The January quarter sales numbers take the group's sales for the full year to $318.3 million, up 0.92 per cent on that reported last year. Briscoes Homeware sales were down 1.35 per cent while Rebel Sport sales rose 6.06 per cent.

Briscoe plans to issue its full year results on March 18.

Briscoe shares lost nearly 30 per cent in value in the 12 months to January 31.

This morning when the market opened, the retailer's shares headed higher, gaining 5c to $1.20 in the first 20 minutes of trade.

- NZPA