Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Briscoe lifts FY profit 10%, cautiously optimistic on 2014

Briscoe posts 10% gain in annual profit, says cautiously optimistic about the year ahead

By Tina Morrison

March 6 (BusinessDesk) – Briscoe Group, which posted a 10 percent gain in annual profit, said it is “cautiously optimistic” about the year ahead as many retailers struggle to grow earnings.

Net profit rose to $33.6 million in the 52 weeks ended Jan. 26, from $30.5 million a year earlier, the Auckland-based company said in a statement. That’s in line with its most recent forecast in January that profit would exceed $33 million, although below the $34.1 million mean forecast of analysts polled by Reuters. Sales rose 6.8 percent to $483.6 million, compared with analyst expectations of $482.5 million.

Briscoe, which operates homeware and sports goods chains, said the past year was challenging for many retailers as a slow start to winter and increased rivalry prompted it to offer “more aggressive promotions” which reduced its margins.

“The group’s gross profit margin for the year decreased from 38.86 percent to 38.5 percent, reflecting the extraordinarily challenging beginning to the year as a result of the very late start to the winter category sales and also the continued competiveness of the market throughout the year,” managing director Rod Duke said.

“While many commentators are talking up the outlook for the New Zealand economy, we see a number of retailers continuing to struggle to grow profitability,” Duke said. “Our experience leads us to be cautiously optimist about the year ahead for Briscoe Group.”

The company didn’t provide a specific forecast for earnings in the coming year. Briscoe is expected to post 2015 net profit of $36.8 million on sales of $506.8 million, according to the mean forecast of analysts polled by Reuters.

Shares in Briscoe Group fell 1.2 percent to $2.53, crimping their 6.7 percent advance so far this year.

In the 2014 financial year, the company’s homeware stores boosted earnings before interest and tax by 6.7 percent to $31.2 million as it closed three Living & Giving stores, opened a new Briscoes Homeware store and refurbished other stores.

Earnings at the company’s sporting goods division rose 22 percent to $12.6 million as it refurbished five of its 32 Rebel Sport stores and rejigged the counters and apparel fixtures at seven other stores to free up additional retail space to boost sales.

The company’s online business had significant sales growth during the year across all three brands, Duke said.

Briscoe will pay a final dividend of 8 cents a share on March 31, up from 7 cents a share the year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news