Rod Duke says trading conditions are challenging, and the high level of promotional activity has kept pressure on margins.
Rod Duke says trading conditions are challenging, and the high level of promotional activity has kept pressure on margins.
KEY POINTS:
An unexpectedly strong July has helped cushion a fall in sales for retail bellwether stock Briscoe Group.
The retailer yesterday announced unaudited sales figures for the half- year to July 27 of $182.0 million, down 4.4 per cent on the $190.3 million reported over the same period lastyear.
Sales in the homeware segment, which comprise the Briscoes Homeware, Living & Giving and Urban Loft stores, declined by 1.8 per cent over this period, while sporting goods retailing via the Rebel Sport stores plunged 9.8 per cent.
On a same-store basis, sales for the half-year were down 7.5 per cent, with homeware sales down 4.6 per cent and sporting goods down 14.1 per cent.
The half-year results were lifted slightly by a better performing second quarter.
Group sales for the 13 weeks to July 27 were $91.7 million, 2.3 per cent lower than for the same period last year.
Homeware sales for the quarter increased by 0.8 per cent, but sporting goods sales fell by 9.2 per cent.
On a same-store basis, homeware sales decreased by 2.13 per cent and sporting goods sales by 12.9 per cent. Group sales were 5.3 per cent down on a same-store basis for the quarter.
Group managing director Rod Duke said trading conditions continued to be challenging, and the "high level of promotional activity in the market" has kept pressure on margins.
"We are, however, pleased that the second quarter finished with July sales more buoyant than for the previous two months, and higher than we had anticipated."
Duke said the strong finish to the end of the half-year is expected to see a first-half, tax-paid profit at the top end of the $2 million to $3 million range advised to the market on June 26.
The group had posted a $10.5 million profit for the same period last year.
Forsyth Barr analyst Guy Hallwright said investors should not read too much into last month's sales performance.
"We've seen a lot of volatility in retail sales month by month."
Briscoe Group shares were unchanged at $1.03.
THE FIGURES
* Second-quarter sales to July 27:$91.7m (down 2.3 per cent).
* Half-year sales to July 27 (unaudited):$182m (down 4.4 per cent).
* Half-year profit:Between $2m and $3m (down between 80.9 and 71.4 per cent).
