Briscoe shares leaps by 13c

Shares in Briscoe Group took a 13c leap yesterday, revitalised by higher quarterly sales and a boost in its half-year profit forecast.

The company, which owns the Briscoes Homeware and Rebel Sports stores, said its unaudited sales for the three months to July were up $8.4 million, or 11.8 per cent, at $79.8 million on the same quarter last year.

It now expects its half-year net profit, due by September 5, to be "satisfactorily ahead" of the same time last year - brighter news for the company that, in March, reported a 21 per cent fall in annual net profit as poor weather dampened summer sales.

Yesterday's result was the third quarter in a row to bring good news, but managing director Rod Duke was reluctant to trumpet a turnaround.

"Having been through a pretty ordinary year last year, I'm a bit reluctant to say that is the turning point and it's pretty rosy from here. But we're approaching the third quarter and then the run-in until Christmas with cautious optimism."

However, he was heartened by the group's good performance on the sharemarket yesterday, which saw shares rise 11c to $1.32 by midday - a 7 1/2-month high - before closing 2c higher at $1.34.

Duke said the group had seen profit improvement right across the board.

In particular, its stock management was better and a media strategy it put in place nine months ago seemed to have hit the mark.

Briscoes Homeware sales for the quarter increased 13.45 per cent to $53.7 million, while Rebel Sport sales rose 8.55 per cent to $26.1 million.

On a same-store basis, Briscoes Homeware sales increased 8.91 per cent for the quarter, with Rebel Sport sales 2.31 per cent ahead of last year.

The July quarter sales figures take unaudited group sales for the six months ended July 31 to $154.4 million, up $15.7 million, or 11.33 per cent, on the first half of last year.

- additional reporting, NZPA