Briscoe profit soars

 

BriscoesNew Zealand homeware and sporting goods retail chain, Briscoe Group, has posted a 12 per cent gain in firs half profit, meeting its profit guidance as sales rose.

Net profit rose to $NZ14.9 million ($A12.98 million) in the six months ended July 28, from $NZ13.3 million in the year earlier period, the Auckland-based company said in a statement on Thursday.

That’s in line with the company’s August 1 forecast for profit of at least $NZ14.6 million. Sales rose 6.2 per cent to $NZ217.4 million.

“Gross profit margin suffered throughout the first quarter but recovered well during the second quarter to finish slightly down on last year’s rate,” managing director Rod Duke said.

“We look forward to a continued improvement in customer confidence and spend levels during the second half of this year and are cautiously optimistic about the group’s performance on the back of improving economic indicators.”

Earnings before interest and tax at the company’s Briscoes Homeware stores rose nine per cent to $NZ13.4 million as sales increased 6.2 per cent to $NZ145.8 million, the company said.

Earnings at its Rebel sporting goods stores increased 29 per cent to $NZ5.8 million as sales rose six per cent to $NZ71.6 million.

Briscoe said it will continue to focus resources on growing its online business.

The company will pay an interim dividend of 4.5 cents,up from four cents in the year earlier and accounting for 65 per cent of net profit.

BusinessDesk

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