3 Aug 2017

Late winter and Lions tour affect retail sales

7:04 pm on 3 August 2017

Listed retailers are welcoming the cooler winter weather because consumers are out splashing the cash.

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Briscoes and Rebel Sport had sales growth of more than 4 percent. Photo: RNZ

Homewares and sporting goods retailer Briscoe Group said its first-half sales have risen despite a late start to winter and the impact of the Lions' rugby tour on retail sales.

It said sales for the six months ended July rose about 4.5 percent to $280.3 million, compared with the year earlier.

Rebel Sport and Briscoes chains had sales growth of more than 4 percent.

Managing director Rod Duke said the warm weather affected second quarter sales, but the recent cold snap will help.

"Seasonal product throughout the electrical and manchester categories were impacted... we believe the switch of discretionary income from general retail to hospitality during the Great British and Irish Lions' tour also impacted homeware sales during the second quarter," he said.

Outdoor clothing retailer Kathmandu is forecasting a rise of more than 10 percent in its full-year profit because of sales growth.

It is expecting its profit in the year to July to be between $37.4m and $38m, compared with last year's $33.5m.

Kathmandu's sales rose $19.7m in the year to $445.3m, with Australian sales growing more than New Zealand's.

Chief executive Xavier Simonet said the growth was pleasing, given tough competition and margin pressure.

"Sales continued to grow in our key winter promotion which completed four successive quarters of same-store sales growth.

"Our financial performance has been strengthened further during the year through operating leverage, reduced inventory and record low debt," he said.

The company releases its full-year result next month.

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