A Briscoes store. Photo: RNZ
Retailer Briscoe Group has reported a drop in half-year profit amid "challenging" market conditions, with its margins coming under pressure.
Key numbers for the six months ended July compared with a year ago:
- Net profit $29.3m vs $33.2m
- Revenue $371.3m vs $372.1m
- Gross profit margin percentage 42.97 percent vs 41.43 percent
- Interim dividend 10 cents per share vs 12.5 cps
Managing director Rod Duke said the company was pleased with its progress despite the challenges.
"The trading environment was mixed, with Q1 impacted by abnormal weather and promotional timing, but Q2 rebounded with a 2.07 percent increase," he said.
The company, which owned the Briscoes homeware brand and Rebel Sport, said online sales increased again, and reflected a bigger portion of group sales.
Duke highlighted the Briscoe Group's steady turnover as a "terrific achievement".
"It's important to recognise that in what continues to be an incredibly challenging environment," he said.
However, the company's margins declined as it tried to maintain profitability.
"As stated previously, our goal this year is to stabilise gross profit percentage and while we're progressing initiatives to support this, the pace of economic recovery and consumer confidence will be critical," Duke said.
"Cost control also continues to be a focus with ongoing cost inflation widely reported as another impediment to improving consumer confidence."
Looking ahead, Briscoe Group forecast after-tax profit to be around $60 million due to weak consumer confidence and economic headwinds.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
