Retailer Briscoe Group reported first quarter sales 0.1 percent lower than a year earlier to $90.2 million.
Managing director Rod Duke today said the company was expecting to report a bottom line profit for the half year to July 26 that was ahead of the first half of last year.
The group incorporates the brands Briscoes Homeware, Living & Giving, Urban Loft, and Rebel Sport.
On a same store basis sales for the quarter to April 26 were 0.9 percent behind the first quarter for last year.
That reflected the continued competitiveness across the retailing industry, the company said.
"We are happy with the result for this quarter but recognise that the retail market is likely to continue to be extremely competitive with sales levels very unpredictable," Mr Duke said.
"We are pleased with the increases we have achieved in gross margin, the reductions we have made in inventory levels and the successes we are having with operating efficiencies and cost minimisation initiatives implemented progressively since early last year." A tier of operational management had been removed and store management remuneration realigned so it was linked more closely to store performance.
The company said that despite relatively flat sales, gross margin percentage and earnings before interest and tax generated for the first quarter were ahead of the same quarter last year.
Homeware segment sales were down 3.4 percent to $58.7m, whilesporting goods sales increased 6.6 percent to $31.5m.
On a same store basis, homeware sales dropped 4.6 percent for the quarter, with sporting goods sales 6.6 percent ahead.
Briscoe shares closed at 82c yesterday, down from $1.25 a yearago. In early March they fell to 60c.
