By IRENE CHAPPLE, NZPA
The Briscoe Group has revealed deep cuts in its sales figures but an increase in margins after attempts to ratchet up the brand's image.
The retailer, which owns the Rebel Sport and Briscoes Homeware chains, suffered a drop in same-store sales for the three months ended April 30
of 8.9 per cent, compared to the same period last year.
Rebel Sport, whose same-store sales were down almost 18 per cent, came in at $22 million while Briscoes Homeware suffered a same-store sales drop of 4.74 per cent and a total $45.2 million in sales.
Managing director Rod Duke warned the shortfall would not be made up during the second quarter.
The share price dropped 3.49 per cent to close at $1.38.
Analysts said the figures were disappointing but not hugely surprising given Duke's commitment to repositioning the brand.
In March, Duke declared the brand would reduce reliance on sales to attract customers.
The announcement came after a fiercely competitive Christmas and research commissioned by Duke that showed consumers believed the brands were being devalued.
His decision to take the brand upmarket by changing the marketing strategy is seen as smart - but difficult.
Yesterday Duke blamed the disappointing sales performance on difficult market conditions and the strategic changes.
Though sales were down, the group said the gross margin generated for the first quarter was "significantly ahead" of the gross margin for the first quarter of last year.
Duke said the gross margin improvements "had certainly been better, and had occurred faster, than we anticipated".
A new Rebel Sport store in Rotorua was opened at the end of last month, bringing the number of Rebel Sport stores to 18 .
Briscoes Homeware store numbers remained unchanged at 30.
