3 Aug 2016

Briscoe Group profit up at least a third

8:51 pm on 3 August 2016

Strong sales over the past few months are expected to drive Briscoe Group's first net half profit up by more than 32 percent.

no caption

Photo: RNZ

The group, which includes the Briscoes retail homewares chain and sporting chain Rebel Sport, expected the first half net profit to be no less than $27 million in the six months ended in July, compared with $20.5m the year earlier.

The profit had been helped by strong second quarter sales, which were up 9 percent to $135.4m in the 13 weeks ended in July, from $124.2m, the year earlier.

Managing director Rod Duke said the result was impressive considering the late start to winter, with homewares sales up 6.5 percent, while Rebel Sport's sales rose 14.3 percent.

"For us to write those kinds of numbers you would have to assume that there has been a market share gain. So there's been a shift of customers into Briscoes and Rebel Sport," he said, adding that customers like buying brand name products at discount prices.

He said the company's online sales were also strong, with growth of about 40 percent contributing more than 5 percent to the group's total second quarter sales.

Mr Duke said the group was working to open more stores and to increase the reach of its online business.

Get the new RNZ app

for ad-free news and current affairs