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Difficult retailing conditions have hit Briscoe Group, which suffered a 13.9 per cent fall in full year net profit.
While sales revenue for the full year ending January 27 was up 9.6 per cent to $407.8 million, net profit after tax declined nearly 14 per cent to $22.4 million. But the result was still slightly ahead of the guidance of $22 million.
Same-store sales grew 2.68 per cent for the group, which runs the Briscoes Homeware, Living & Giving, Urban Loft and Rebel Sport stores. Same store sales in homewares expanded 4.3 per cent, but sporting goods sales fell 1.1 per cent.
Managing director Rod Duke said it had been a difficult year, with operating costs impacted by the continuing pressure of a tight labour market, high fuel and transportation costs, the opening of 11 new stores across the group, and the implementation of new SAP financials and merchandising systems software.
The group is scaling back new store openings, with only two planned for the financial year.
It also plans to refine the product range at its Living & Giving stores, and improve the supply and distribution channels of directly imported products.
Goldman Sachs JBWere analyst Rodney Deacon said the plan to scale back the opening of new stores was slightly more drastic than most were expecting, but was prudent in a weak market.
An unchanged final dividend of 4.5 cents per share was declared. Shares in the retailer closed unchanged at $1.30.
