WELLINGTON: Briscoe Group has reported a 33 percent rise in net profit on rising sales and market share. The sporting goods and homewares retailer has made a $27.3 million net profit in the six months ended in July, compared with $20.5m the year earlier.
Revenue rose 10 percent to $268.4m, which included a $1.2m dividend from Briscoe’s 19.9 percent stake in outdoor clothing retailer Kathmandu. Total same store sales rose more than 7 percent, with Rebel Sport up 11 percent and Briscoes Homeware up 5 percent.
Briscoe group managing director Rod Duke said it was a strong result despite the impact of a late start to winter and strong competition. He said second-half sales were tracking better than the year earlier, although the strong New Zealand dollar would have a negative impact on gross margins.
“While the New Zealand dollar has recently strengthened against the US dollar from below 70c, we are conscious that hedging of foreign exchange exposures taken across the last 12 months, at less-favourable rates than those available currently, will continue to flow through to the cost of imported product,” he said. “This will cause increased pressure on the gross profit margin percentage for the second half of this year.” The company also announced a 16 percent rise in its interim dividend – up one cent to 7c a share.
