A poor start to the Christmas selling season looks set to hit the bottom line of home and sportswear retailer Briscoe Group, which has warned that its full-year profit could be down as much as $6 million on last year.
Briscoe has struggled against fierce competition and has been faced
with rising costs and falling sales at Rebel Sports stores.
In the first half of its financial year, Briscoe's profit dipped $3.1 million. Now a "disappointing end to November and also a slower-than-anticipated start to December trading" could lead to a similar reduction for the second half.
Briscoe's woes deepen as preliminary signs show the November and December selling period has been buoyant. Electronic transactions, a good sign of retail sale strength, were up 11 per cent in November and 7 per cent in the first two weeks of December, according to Paymark Eftpos.
The Retailers Association is picking year-on-year sales growth of up to 7 per cent for December.
Briscoe said its profit for the year to January could come in at $17.5 million, compared with $23.6 million in the previous year.
A quarter of Briscoe's total sales revenue is generated in December and January.
Although Briscoe has enjoyed higher sales revenue this month than last year, on a same-store basis the situation has worsened.
Briscoe managing director Rod Duke, who was unavailable to talk to the Herald, issued a statement blaming competition and costs associated with opening six new stores.
