Retail chain Briscoe Group said today its January year net profit fell 14 per cent to $22.4 million.
The result slightly bettered guidance of $22m announced in November.
The fall was despite a 9.6 per cent lift in sales to $407.7m.
It declared a final, fully imputed dividendof 4.5 cents per shares. The unchanged full year dividend is 76 per cent of tax paid earnings.
Gross profit increased 8.6 per cent $164.8m, equating to a gross profit margin of 40.4 per cent, down from 40.8 per cent a year ago.
Earnings before interest and taxation fell 12.4 per cent to $31.77m.
Managing director Rod Duke said it was a difficult year, reflecting the challenging trading conditions faced by retailers.
Operating costs were affected by the continuing pressures of a tight labour market, high fuel and transportation costs, the opening of 11 new stores and the introduction of new accounting systems and merchandising systems software.
Total floor area of the group's homeware operations increased by 5.7 per cent to 92,214 square metres across 54 stores. On a same-store basis, sales growth for the year was 2.68 per cent for the group. The homeware and sporting goods segments returned same store sales growth of 4.27 per cent and negative 1.12 per cent respectively.
Inventories rose $8.6m to $67.8m.
The company had $50m cash against $55.8m a year ago.
Net cash inflows from operating activities eased to $22.67m from $23.1m a year ago. "We agree with the general view that the year ahead will continue to be challenging for retailers," Mr Duke said.
Briscoe shares closed yesterday on $1.30. They have fallen from $1.78 in May and hit a low of $1.25 earlier this month.
