Market Herald logo

Subscribe

Be the first with the news that moves the market
  • New Zealand retailer Briscoe Group (BGP) tables $176.2 million in sales revenue for the three months to the end of April — largely in line with first-quarter sales last year
  • The company says the quarterly result was roughly 17 per cent higher than the same period in 2019 before COVID-19 impacted retail sales and foot traffic to stores
  • Managing Director Rod Duke says the company estimates it lost roughly $4 million in its first trading quarter of 2022 from the impact of Omicron in New Zealand
  • Nevertheless, he says Briscoe currently is tracking to outperform its 2021 net profit after tax
  • Briscoe shares last traded for $4.84 on the ASX and were up 1.55 per cent to NZ$5.89 (A$5.31) this morning on the New Zealand stock exchange

New Zealand retailer Briscoe Group (BGP) has tabled $176.2 million in sales revenue for the three months to the end of April — largely in line with first-quarter sales last year.

The company said sales from its homewares segment grew 2.13 per cent to $106.8 million compared to the same time period last year, while sales of sporting goods from Briscoe’s New Zealand Rebel Sport brand grew 1.21 per cent to $69.4 million.

However, Briscoe Managing Director Rod Duke said in light of COVID-19-induced lockdowns and the subsequent increase in retail activity when lockdowns ended, the first quarter of 2019 was a more comparable period of trade for the business.

“It is important to note that the first quarter of last year recorded huge growth (+78.4 per cent) as a result of the massive disruption caused by the first national lockdown across March-May 2020 and the subsequent resurgence in retail spend,” Mr Duke said.

“Recognising this, we also note that this year’s first quarter also represents a significant increase of 16.97 per cent on the more comparable first quarter period of February 2019-April 2019, before any impact of COVID.”

Mr Duke said the spread of Omicron in New Zealand negatively impacted foot traffic to brick and mortar stores during the first months of 2022, with this impact “particularly noticeable” in February and March.

He said though online sales grew and accounted for 20.2 per cent of group sales for Briscoe’s first trading quarter of 2022, the company still estimated some $4 million was lost as a result of the spread of Omicron.

In any case, Mr Duke said Briscoe was tracking to outperform its 2021 net profit after tax, though he remained cautious in his outlook given the ongoing uncertainty and instability in the retail sector from COVID-19.

“As well as growing sales, we also expect group gross profit margin dollars to be higher than last year for the quarter. However, group gross profit margin percentage is under pressure mainly as a result of the widely-reported supply chain disruptions and associated costs.”

On the ASX, Briscoe shares last traded at $4.84 on Wednesday, May 4.

The company also trades on the New Zealand stock exchange, where shares were up 1.55 per cent to NZ$5.89 (A$5.31) at 10:37 am NZST.

BGP by the numbers
More From The Market Herald
Step One (ASX:STP)- Founder & CEO, Greg Taylor

" Step One Clothing (ASX:STP) shares plummet on slashed revenue and earnings guidance

Shares in Step One Clothing (ASX:STP) have nosedived after the company slashed revenue growth and earnings…
BHP Group (ASX:BHP) - CEO, Mike Henry

" BHP (ASX:BHP) to pay record interim dividend after strong half yearly results

BHP (ASX:BHP) will pay a record interim dividend of US$1.50 (A$2.10) after reporting a strong financial…
Kingfisher Mining (ASX:KFM) - CEO & Executive Director, James Farrell

" Kingfisher Mining (ASX:KFM) completes drilling in WA

Kingfisher Mining (ASX:KFM) has completed drilling at two of its projects in the Gascoyne Mineral Field…

" Ardea Resources (ASX:ARL) confirms nickel-cobalt mineralisation at Goongarrie South

Ardea Resources (ASX:ARL) has confirmed high-grade, near-surface nickel-cobalt mineralisation at the Goongarrie South deposit in WA.