Briscoe leads other retailers

The Briscoe Group seems to be doing better than most other retailers in the current environment, Forsyth Barr broker Suzanne Kinnaird says.

Briscoe reported on Friday that July quarter sales were up nearly 5% and the six-month sales ending July were up 2.1%.

The company expected first-half profit to be at least $10.2 million.

"This is in line with our forecast and while the first-half sales were marginally better than we expected, we are not changing our $25.5 million full-year 2012 forecast or our $1.62 valuation."

Three factors had influenced the sharp second-quarter sales: the Easter and Anzac Day timing negatively affected the first-quarter sales by 4%; winter started late, which hurt first-quarter sales of seasonal lines but boosted second-quarter sales as stocks were discounted to clear; and the first quarter was affected by the February earthquake in Canterbury.

"Recent statistics suggest slightly improved overall retail sales recently. But even allowing for this and the factors mentioned earlier, Briscoes seems to be doing better than most retailers in the current environment," she said.

Briscoe Group managing director Rod Duke said pressure on gross profit margin had remained strong during the second quarter, reflecting competitive markets and tight inventory control to ensure optimal stock levels.

First-half results are due to be announced on September 9.

 

Add a Comment