KEY POINTS:
Briscoe Group is warning investors the Christmas retail rush might not be enough to lift full-year profits.
The company signalled yesterday profits after tax could be down as much as 15 per cent on the $26 million reported last year.
Managing director Rod Duke said it was possible
the end result may not be anywhere near as scary as "up to 15 per cent", but if current retail trends continue "that could be what the number looks like".
"The outcome will of course be particularly affected by the buoyancy or otherwise of the retail market over the Christmas period," he said.
Duke said total sales and margins for the quarter were higher than for the same quarter last year, but poor same-store sales dragged down the impact of new stores.
"If we had got the sales that we had budgeted for and we thought that were available when we prepared our budgets last year, then we would have been significantly in front of where we are at the moment," said Duke.
Briscoe Group, which operates the Briscoes, Living and Giving, Urban Loft and Rebel Sport brands says unaudited sales for the 13 weeks to October 28 were $87.6 million - 8 per cent higher than the same quarter last year.
Unaudited sales for the first nine months of the financial year were $278 million, up 12 per cent on last year.
However, same-store sales for the quarter were down 0.64 per cent. Same-store homeware sales were up 1 per cent but same-store sporting good sales were down 6 per cent.
Overall homeware sales were up 8 per cent to $59.2 million and sporting goods sales grew 9 per cent to $28.4 million. Briscoe opened three Rebel Sport stores, taking the total to 32.
Duke said sporting goods sales were highly discretionary and affected most by rising mortgage interest rates and fluctuating petrol prices.
Forsyth Barr's Guy Hallwright said Briscoe Group's sales performance reflected slowing consumer spending and increased cost pressures.
"The last quarter is by far the most important quarter," said Hallwright. "But it's hard to predict what sort of Christmas we're going to have."
He said the dampening effect of higher mortgage rates and petrol prices were being offset by low unemployment and the strong New Zealand dollar meaning the Christmas period could be "OK but not spectacular".
The company has opened two Briscoes stores in Pukekohe and Upper Hutt and a Living and Giving store in Albany.
Briscoe Group shares closed down 5c at $1.46.
BRISCOE GROUP
Three months to October 28
2007
Total sales - $87.6m
Year-to-date sales - $277.9m
2006
Total sales - $81m
Year-to-date sales - $248.4m