17 Mar 2009

Fall in retailer Briscoe's profit

8:36 pm on 17 March 2009

Briscoe Group's full year profit has fallen by almost a half, which the company says is due to consumers cutting back spending.

The retailer, which runs the Briscoes Homewares, Rebel Sport, Living & Giving, and Urban Loft chains, made $11.6 million for the year to January, a decrease of 48% on the previous year.

Revenue fell 5% to $388 million, and sales at stores that had been open for at least a year fell 7%.

Briscoe managing director Rod Duke says it is a disappointing result, and reflects the difficult times retailers are facing as consumers cut back their spending.

However the company has $63 million cash in the bank compared to $49 million last year, he says, and no bank borrowings.

Mr Duke says a new inventor system is paying off for the company.

He says the year ahead is likely to be difficult for all retailers and Briscoe will probably continue discounting to help bring in customers.

The company will pay a dividend of 3.5 cents a share, down from 4.5 cents last year.