Briscoe Group banks modest rise in sales despite tough climate

Tuesday, 7 May 2024

Rod Duke, managing director and the largest shareholder of Briscoe Group, says the 1% increase is a “spectacular result” given the tough retail market.

Sales of homeware and sporting goods retailer Briscoe Group rose by 1% in the first quarter of the year – a “spectacular result” given the state of the retail market, says managing director Rod Duke.

Briscoe Group’s sales rose to $183 million in the three months to April 28, up from $181.2m in the same period a year earlier.

Duke, who is the company’s largest shareholder, said the retailer was confident it would be able to deliver “strong” half year and full year financial results despite continued pressures in retail as consumers spending continued to soften.

The Briscoes homeware chain sales decreased 1.09% to $108.7m in the period, while sales at Rebel Sport were up 4.28% to $74.3m.

Sales at Briscoes decreased by 1% in the first quarter of Briscoe Group’s financial year.

Like other retailers, the group said its margins continued to be challenged, but it anticipated that its after profit tax for the quarter would be in line with that of the same period last year.

Briscoe Group has continued to buck trends in the retail market and has posted consistent sales and earnings growth for nine years in a row.

It has come to be known as anomaly in its ability to navigate challenges in the market without denting its earnings. Duke said he expected that to continue and Briscoe to outperform the market albeit with smaller increases compared with what had been seen in previous years.

“Compared to what you will be seeing [elsewhere] from the market, this is a spectacular result. Any sales this year that are greater than that of previous corresponding period will be a very, very good result going forward,” Duke told The Post.

“Right now the market is tough, and that will be evident by our peer group as they start to report in two weeks’ time. The market’s prediction is their sales will be significantly down - in line with the retail association and credit card reports that have indicated that they market in the categories we operate in are under pressure.

“We think the year will continue to be difficult, but I remain confident that our numbers will be inline with last year.”

Duke anticipated that the market would improve and pressures on retailers would ease in the third quarter of the year towards the lead-up to Christmas.

“I think the retail market will be difficult for a while.

“A lot depends on the mood of the suburbs. What happens in the suburbs impacts us, and everyone else. When you’ve got food, utilities, insurances and interest rates at these high levels, and inflation running where it is at the moment, it is going to be difficult because there is not as much disposable income in the suburbs as there was a year or two ago,” said Duke.

“I think by the third quarter, which is the last quarter of this calendar year in the run up to Christmas, I think it should be a little easier. But in the next three or four months it is going to continue to be the way it has been for the last three months.”

A recent Retail NZ survey has found retailers are increasingly gloomy about the trading outlook for the rest of the year, following a difficult period in the first quarter.

The latest Retail Radar report found 64% of retailers missed their sales targets in the three months to March 31, and almost a third of businesses were unsure if they would survive the next 12 months.