Briscoes reports flat sales with tough competition

Briscoe's Urban Loft store in Auckland. Photo / Martin Sykes

Retailer Briscoe Group has reported first quarter sales 0.1 per cent lower than a year earlier to $90.2 million.

Managing director Rod Duke today said the company was expecting to report a bottom line profit for the half year to July 26 that was ahead of the first half of last year.

The group incorporates the brands Briscoes Homeware, Living & Giving, Urban Loft, and Rebel Sport.

On a same store basis sales for the quarter to April 26 were 0.9 per cent behind the first quarter for last year.

That reflected the continued competitiveness across the retailing industry, the company said.

"We are happy with the result for this quarter but recognise that the retail market is likely to continue to be extremely competitive with sales levels very unpredictable," said Duke.

"We are pleased with the increases we have achieved in gross margin, the reductions we have made in inventory levels and the successes we are having with operating efficiencies and cost minimisation initiatives implemented progressively since early last year."

A tier of operational management had been removed and store management remuneration realigned so it was linked more closely to store performance.

The company said that despite relatively flat sales, gross margin percentage and earnings before interest and tax generated for the first quarter were ahead of the same quarter last year.

Homeware segment sales were down 3.4 per cent to $58.7m, while sporting goods sales increased 6.6 per cent to $31.5m.

On a same store basis, homeware sales dropped 4.6 per cent for the quarter, with sporting goods sales 6.6 per cent ahead.

Briscoe shares closed at 82c yesterday, down from $1.25 a year ago. In early March they fell to 60c.

- NZPA