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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news