The latest quarter sales were up 2.72% on $125.6million reported in the previous corresponding period (pcp).
For the quarter, homeware sales increased by 2.48% to $81million and sporting goods sales were up nearly $48million, an increase of 3.11%. Group managing director Rod Duke said the group’s performance was pleasing in a market which continued to be highly competitive.
"We are especially pleased with the sales growth achieved during October after rather subdued retail trading during September had been widely reported on the back of unseasonal weather, election-related uncertainties and the slowing house market."
There was a healthy rebound in October with Labour Day promotions delivering significant growth on the previous year, he said.
A strong employment market, low rates of unemployment and strengthening rural incomes were positive economic indicators which looked promising for retailers leading into the Christmas period.
Mr Duke was encouraged by the strong sales growth experienced during October and it gave him confidence as the "crucial" final quarter started with sales and profit tracking ahead of last year — as they had done for each of the previous two quarters.
Forsyth Barr broker Suzanne Kinnaird said Briscoe Group’s share price had fallen about 20% in the past three months, reflecting a material price/earnings multiple derating.
"We expect this has been driven by negative sentiment to the sector from the imminent entry of Amazon closer to home and the risk of macro drivers weakening — which we view as overstated."
Briscoe Group was trading at attractive multiples relative to history, the New Zealand market and sector peers, she said.
Group shares last traded at $3.28, up 1c. Forsyth Barr’s target price was $3.65.
