Rod Duke, CEO and largest shareholder of Briscoe Group. Photo / Dean Purcell
Homewares and sporting goods retailer Briscoe Group posted net income of $45.6 million in the six months to July 31.
Its overall revenue was down 3.9% from $47.4 million in the same period last year.
In the six months, Briscoe grew revenue 2.7% to $367 million.
The company will pay an interim dividend of 12 cents per share for the period.
Briscoe Group Chairman Dame Rosanne Meo said the half-year result was an outstanding performance “given the significant headwinds facing the retail sector.
“The agility and determination shown by the management team in the face of these challenges has been impressive not only with the result that has been produced, but also with regard to the support and care provided to the entire team. of the Briscoe Group,” Meo said in a statement to NZX.
Home goods sales for the first half increased 2.74% to $228 million from $222 million in the same period last year, while its sporting goods sales increased 2. 51% to $139 million, from $135.7 million.
Its gross margin in dollars increased slightly from $166 million to $167 million, while its gross margin percentage decreased from 46.5% to 45.6%.
Chief Executive Rod Duke said he was pleased with the group’s financial performance.
He said producing after-tax net profit slightly below last year’s record first-half profit was very pleasing.
Duke said people should remember how bad mall foot traffic got when the Omicron outbreak started.
He said a recent dip in economic sentiment and the second wave of Omicron had again hurt foot traffic.
“In addition, being one percentage point lower than last year’s half-year gross profit margin percentage is an excellent result. However, there is still much to be done as margin pressure continues to escalate” , added Duke.
“It should also be noted that this first half represents a 21.44% increase over the most recent comparable period unaffected by Covid, February 2019 – July 2019.”
Duke – the Briscoe Group’s largest shareholder – said the company was facing pressure on its margins due to continued supply chain disruption and rising costs, from a higher New Zealand dollar low and a decline in consumer confidence due to cost of living spikes.
He said the group was aware of the impact of the cost of living on its team and as a result it had raised pay rates for retail workers by 7% from April.
Briscoe received a dividend of $1.44 million, included in its earnings from its investment in outdoor apparel and equipment company KMD Brands in the first six months of trading in the FY22 financial year.
Duke said Briscoe’s online business continued to exceed expectations and “performed extremely well” during the period.
Its online sales increased by almost 23% during the first half and now represent more than 19% of the group’s total sales.
“With the escalation of Omicron early in the period and its impact on foot traffic to physical stores, our online platform offered a viable and seamless alternative to our customers,” he added.