Briscoe Group owns Briscoes home goods and Rebel Sports. Photo: Hazel Redmond Photographer
Retailer Briscoe Group sales dropped in the third-quarter sales, as consumers pulled back spending on sports goods.
- Total group Q3 sales $171.0m (-1.8%)
- Homeware sales +1.8%, sports -7.3%
- Group sales for nine months $542m (-0.7%)
- Re-affirms full-year profit forecast of about $60m
Managing director Rod Duke said the three months ended September were a mixed trading environment, with consumers buying household staples, but cutting back on discretionary spending, like sporting goods.
Duke said the group, which owns Briscoes home goods and Rebel Sports, switched strategy in the third quarter, from discounting prices to make sales to earning more on lower volumes.
"With inventory in excellent shape at half-year, we made a strategic decision to shift focus from driving top-line sales to stabilising gross profit margin percentage," he said.
That led to a fall in sales for the three months, but homeware sales grew by 1.8 percent and margins on sports goods improved markedly, despite lower volumes.
"Both segments have maintained the quality and level of inventory heading into our critical fourth quarter. The decision means homeware and sports goods are well placed for the festive season."
He said he was satisfied with the group's overall performance over the first three quarters, especially as consumer confidence remained low.
"With sales less than one percent behind last year, gross profit margin stabilised, inventory in great shape and transformative projects well progressed, we are well placed to maximise the final quarter."
He hoped recent interest rate cuts would boost consumer confidence and lift spending in the key holiday season.
Briscoe Group maintained its full-year profit forecast of of about $60m.
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