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

 


Briscoe says first-half profit rose 21% on fatter margins

Briscoe says first-half profit rose 21% on fatter margins, online sales

By Suze Metherell

Aug. 5 (BusinessDesk) - Briscoe Group, the homeware and sporting goods retail chain, lifted first-half profit 21 percent, bolstered by an insurance settlement, and as second-quarter sales rose, margins widened and increased online sales offset a highly competitive retail environment,

Net profit rose to at least $18 million in the six months ended July 27, from $14.9 million a year earlier, the Auckland-based company said in a statement. The bottom line includes the finalisation of a $1.3 million business interruption claim for the February 2011 Christchurch earthquake, it said. Sales rose 6.5 percent to $231.5 million, and were up 6.3 percent on a same-store basis.

"Strong sales, improved margin performance, growth in our online channel and ongoing efficiencies through the group have resulted in bottom line profit tracking ahead of last year," managing director Rod Duke said. That was "despite the late start to winter, which did slightly impact our second quarter sales and gross margin percentage across the winter-dependent categories."

In March the retailer said it was “cautiously optimistic” about the year ahead after posting a 20 percent gain in annual profit. The retail sector has been struggling with increased competitiveness and aggressive promotions as the rag trade in particular tries to tackle the rise of online shopping and a high kiwi dollar, which has seen New Zealand bargain hunters shop offshore. A slow start to winter further crimped sales, with shoppers not rushing to buy warmer clothes.

The company's gross margin improved in the first-half reflecting the strength of the New Zealand dollar, giving the retailer stronger buying power, and improved marketing strategies, Duke said, which was "more than offsetting high levels of competitiveness across the retailing sectors in which the group operates."

Last month, Duke told BusinessDesk the company held a "highly protectionist view of the currency" and was "fairly well hedged" with just a small percentage left over.

Second-quarter sales rose 7.2 percent to $116.7 million in the three months ended July 27, with homeware segment revenue gaining 6.3 percent and sporting goods rising 9.4 percent, it said without giving a dollar figure. On a same store basis second-quarter sales rose about 7 percent.

The shares, of which Duke holds about three-quarters, rose 3 percent to $2.79, and have advanced 13 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news