Briscoe increases 1Q sales by 4.3pc, says profit tracking ahead of last year

Briscoe Group's sales across its homeware and sporting goods retail chains rose 4.3 per cent to $119.8 million in the first quarter. Photo: Stuart Munro.

Briscoe Group increased first-quarter sales and margins across its homeware and sporting goods retail chains and said profit is tracking ahead of the same period last year in a "highly competitive" market with "relentless promotional activity".

Sales rose 4.3 per cent to $119.8 million in the first quarter ended April 26, Auckland-based Briscoe said in a statement.

Excluding the opening of two new Rebel Sport stores in Paraparaumu in December and Christchurch in March, sales rose 3.4 per cent, it said.

Briscoe's homeware and sporting goods chains both increased gross profit percentages compared with the same quarter last year.

The retailer is boosting profits after enhancing its inventory management, introducing new store technology to manage stock, improving marketing, refining the quality and breadth of its product ranges and improving store layouts.

It is also benefiting from foreign exchange cover taken out last year when the New Zealand dollar was significantly stronger against the US dollar, it said.

"Briscoe Group has made a very positive start to the current financial year," said managing director Rod Duke.

"Increased sales and margin performance across both homeware and sporting goods has resulted in group profit tracking ahead of last year."

First-quarter homeware sales increased 0.5 per cent to $73.1 million from the year earlier period, the company said.

Its sporting goods sales increased 11 per cent to $46.7 million. Excluding the impact of the two new store openings, sporting goods sales increased 8.4 per cent, it said.

Briscoe Group is expected to increase annual profit by 5.4 per cent to $41.4 million as sales rise 5.6 per cent to $535.4 million, according to analyst estimates compiled by Reuters.

The company's shares last traded at $2.90 and have slipped 2.4 per cent so far this year.

The stock is rated an average 'hold' according to three recommendations compiled by Reuters.