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- New Zealand retail group Briscoe (BGP) posts another quarter of sales growth for the three months to the end of July despite ongoing COVID-19 and inflationary pressures
- The company’s homewares and sporting goods segments each grew over the quarter, taking half-yearly sales to $367.9 million — an increase of 2.66 per cent on last year
- Briscoe Managing Director Rod Duke says the company’s online sales channel performed “magnificently” and helped offset brick-and-mortar struggles related to COVID-19
- The company expects to post an overall increase in full-year NPAT for 2022, though it says half-yearly NPAT will be down slightly in its upcoming September report
- Shares in Briscoe last traded at $4.84 on the ASX on August 3
New Zealand retail group Briscoe (BGP) has posted another quarter of sales growth for the three months to the end of July despite ongoing COVID-19 and inflationary pressures.
The company, which owns brands like Briscoes Homewares and Rebel Sport New Zealand, today said group sales for the quarter ending in July topped just under $192 million, representing a 3.49 per cent increase on the $185.3 million in sales for the same time period last year.
Briscoe’s homeware segment helped drive the growth, growing by 3.29 per cent to $121.9 million, while its sporting goods segment grew by 3.84 per cent to $69.8 million.
This all translated to half-yearly sales of $367.9 million for the 26 weeks to the end of July — an increase of 2.66 per cent on first-half sales last year.
Briscoe Managing Director Rod Duke said it was worth remembering that during the first half of 2021, the company recorded “huge” growth upwards of 22 per cent as a result of the resurgence in retail spending in the aftermath of nationwide pandemic-induced lockdowns.
“So, to post increased sales on last year’s impressive performance is a great
achievement,” Mr Duke said.
“Recognising this, we also note that this year’s first half sales performance represents a significant increase of 21.44 per cent on the more comparable first-half period of February 2019 – July 2019, that is, before any impact of COVID.”
Online sales driving the growth
Mr Duke said the first-half growth in 2022 came despite the ongoing pandemic and economic headwinds faced by the company across New Zealand.
In particular, he said the rise of the Omicron variant of the coronavirus dealt a blow to foot traffic in brick-and-mortar stores during the first quarter of this year.
Meanwhile, during the second quarter, New Zealand faced increasingly negative economic sentiment as shoppers had to deal with rising costs of living and interest rates. This is not to mention the emergence of a second wave of Omicron cases.
Nevertheless, the Briscoe Managing Director said the company’s online sales channel helped offset the brick-and-mortar struggles.
“Our online channel continues to respond well and performed magnificently, recording sales growth in excess of 22 per cent for the half and representing 19.4 per cent of group sales compared to 16.2 per cent for the previous year’s first half,” Mr Duke said.
In any case, he said the company was expecting to post an overall increase in full-year net profit after tax (NPAT) for 2022, though it acknowledged that its first-half NPAT would be slightly below the $47.5 million posted last year, with its gross margin percentage also down slightly.
“Notwithstanding the more recent deterioration in market conditions, we believe there is significant opportunity throughout the second half of the year, especially in the third quarter which last year was heavily impacted by the Auckland (and other) stores’ enforced shutdowns from mid-August to early November,” Mr Duke said.
The company plans to release its half-yearly report and declare an interim dividend on September 14.
Shares in Briscoe last traded at $4.84 on the ASX on August 3.
