Briscoes forecasts profit increase

00:07, Aug 03 2012

One of New Zealand biggest retailers, Briscoe Group is forecasting a 26 per cent increase in profits after tax for the half year to the end of July compared to the same period last year.

The expected profit of $13 million, to be a announced on September 7, comes off the back of a 5.5 per cent increase in sales totalling $204.7m.

The group's homeware sales through Briscoes and Living and Giving stores were up 5.5 per cent while sporting goods sold through the Rebel Sports chain made similar gains.

On a same store basis group sales for the half year were up 6.8 per cent with homeware up 7.9 per cent and sporting goods up about 4.5 per cent on the same time last year.

Managing director Rod Duke said the company had "continued its positive start to the year" with strong sales and margins putting the group's profit on track ahead of last year.

This was "important in relation to our full year profit, given the very strong third quarter result achieved last year on the back of the Rugby World Cup", Duke said.

Despite the "continued tough operating conditions" and significant resources committed to driving online sales group earnings and sales were up on last year.

Briscoe's two new websites for its Briscoes and Rebel Sport brands launched early this year would "become increasingly important" to the group, Duke said.