KEY POINTS:
Briscoe Group first quarter sales are up nearly 20 per cent on last year but the increase has come at the expense of profits.
The company yesterday blamed the late arrival of last summer and delayed onset of winter for forcing it to discount summer stock during the
quarter to make way for winter merchandise.
Group managing director Rod Duke said summer has "hung around a while" meaning winter sales - normally well on their way by now - were slow so far.
"People have their hands in their pockets in terms of [buying] winter merchandise, we've yet to really have a start."
All summer stock had now been cleared, Duke said.
The group, which owns the Living & Giving, Rebel Sports, Urban Loft and Briscoe stores, yesterday reported that unaudited sales for the three months to April 29 were $96.4 million, 17 per cent higher on the same period last year.
Same-store sales were up 7 per cent on the same period last year.
Forsyth Barr analyst Guy Hallwright said the company's sales looked strong but were obviously driven by "quite substantial discounting". That indicated the half-yearly profit would be the same as that reported last year, he said.
Net profit after tax for the six months to July last year was $12 million.
The high dollar had not had as positive an effect on importers as people thought, Duke said.
Briscoe, which imports most of its stock, buys in advance so "just because the dollar changes three or four weeks ago doesn't mean that [the company's] next consignment is enhanced immediately".
Competitive pressures had also affected sales, Duke said.
"If you get other retailers in a similar position that are buying merchandise at a US dollar rate, and they decide to give it away by reducing their margins a lot, then [the competitive effect is] neutral."
Same-store sales for the group's homeware segment increased by 8.7 per cent, while sporting goods sales were ahead by 3.5 per cent on last year's first quarter.
The group was spending a "seven figure" sum upgrading its Panmure store and would be rolling out new-look stores in some centres this year, Duke said.
Last month he signalled the group would increase the number of Living & Giving stores to 20 in the next year or two. It has already scheduled another five Rebel Sport stores to be built this year.
Briscoe Group's share price last night closed up 6c at $1.70.