5 Aug 2012

Briscoe profit jump forecast

12:00 pm on 5 August 2012

Briscoe Group is forecasting its half-year profit to jump by a quarter, despite saying market conditions remain difficult.

The sporting goods and homeware retailer, which operates the Rebel Sport, Briscoes and Living & Giving chains, expects to make about $13 million in the six months to the end of July, an increase of 26% compared with last year's profit of $10.3 million.

Half-year sales rose 5.5% to $204.7 million, led by increases in both its sporting goods and homeware.

Sales at stores open at least a year rose more than 6.5%, led by homeware.

Managing director Rod Duke says profit is being driven by keeping costs of running the business to a minimum and the high New Zealand dollar making goods cheaper to import.

Mr Duke also says consumers are still prudent in their spending, and the company will do what it takes to get them in the door, including frequent discounts.

The group is holding a 10th less stock than at the same time last year.