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

 


Briscoe 1H profit jumped 24%, shares rise to a record

Briscoe 1H profit jumped 24%, shares rise to a record

By Tina Morrison

Sep. 4 (BusinessDesk) - Briscoe Group, the homeware and sporting goods retail chain, boosted first-half profit 24 percent as it improves the layout of its stores and benefits from a strong New Zealand dollar. The stock jumped to a record.

Profit rose to $18.5 million, or 8.37 cents a share, in the 26 weeks to July 27, from $14.9 million, or 6.81 cents, in the year earlier period, the Auckland-based company said in a statement. Profit rose 17 percent excluding a $1.34 insurance payment related to the 2011 Christchurch earthquake, Briscoe said. Sales rose 6.5 percent to $231.5 million.

The company, which operates 78 Briscoes Homeware, Rebel Sport and Living & Giving stores, has changed the layout of many of its stores to increase the available selling space and improve the flow of stock through to the sales floor. Briscoe has benefited from a higher New Zealand dollar lowering the cost of its imported products, allowing it to lower its prices as well as increase its profit margins. Gross profit margin rose to 39.6 percent in the latest half from 39.18 percent in the year earlier period.

"We are very pleased to finish this first half with strong growth recorded in sales, gross profit and bottom line profit," said managing director Rod Duke. "We are also optimistic about the operational and financial outlook for the group."

Briscoe didn't provide a full-year earnings forecast. The company increased its first half dividend to 5.5 cents a share from 4.5 cents in the year earlier period. The dividend will be paid Sept. 30.

Shares in Briscoe jumped 3.5 percent to a record $3, and have gained 21 percent this year.

Briscoe has increased its profits even as rivals including Warehouse Group warned earnings would be dented by a warmer start to winter and as retailers face increased rivalry from internet competitors.

The company said its online business continues to grow significantly and it will invest in improving the functionality and performance of tis ecommerce platform in the second half of the financial year.

In the first half, earnings before interest and tax at the company's homeware unit rose 18 percent to $15.9 million as sales increased 5.3 percent to $153.6 million.

The sporting goods unit boosted earnings 42 percent to $8.3 million as sales rose 8.8 percent to $77.9 million.

During the first half the company extended its Ashburton Briscoes Homeware store and refurbished its Rebel Sport store at Manukau. In the second half, the company will open a new Rebel Sports store at Coastlands in Wellington in the existing Briscoes Homeware store site and the Briscoes store will move to an adjacent larger site. It also plans to relocate its Briscoes and Rebel stores in Wanganui to a new purpose built location with shared back-of-house facilities.

Extensions and relocations are also planned for Briscoes stores in Taranaki Street, Wellington, as well as Taupo and Hamilton during the 2015-2016 financial years.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news