Investors quickly showed their displeasure at retailer Briscoe Group's announcement this morning that its fourth quarter same store sales had fallen 3 per cent.
Briscoe Group's shares fell 5c to 159 a few minutes after the market opened this morning, despite the company saying it had enjoyed its best ever Christmassales.
Briscoe Group said record December sales had boosted fourth quarter sales by more than 3 per cent to $106.2 million compared to the same period last financial year.
However , the group had opened three new stores during the quarter. With these excluded, its same store sales for the quarter were down 3.05 per cent on the corresponding period last financial year.
Sales at the retailer's Briscoes Homeware outlets of $74.5 million were 2.9 per cent up on the previous corresponding period, while sales of $31.7 million at its Rebel Sport stores were up 3.36 per cent, the company said in a statement to the NZX.
Briscoe's directors said the group's anticipated 4 per cent drop in full-year after-tax profit from last year's $23.6 million was due to the impact of lower interest income and a $450,000 taxation expense against the amortisation of the final Rebel Sport franchise fee payment.
Full year earnings before interest and tax (ebit) were expected to be in line with the $33.3 million reported for last year, reflecting the impact of higher sales and margin, offset by increased operating costs.
For the year ended January 31, Briscoe's full year unaudited group sales were $315.4 million, a rise of 6.75 per cent on the previous year.
Briscoes Homeware sales had increased by 6.02 per cent, and Rebel Sport sales were up 8.44 per cent.
The company said that after adjustment for four fewer trading days this year because of a move to calendar month-end reporting, the group's same store sales for the year were up 3.44 per cent on last year.
