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Briscoe cedes gross margin to boost sales

NZ Newswire logoNZ Newswire 9/05/2017 Paul McBeth

Briscoes © Getty Briscoes Briscoe Group, which reported yet another record profit in March, gave up some margin in its homeware chain to boost sales in the first quarter.

Revenue rose 6.3 per cent to $133 million in the three months ended April 30 and gained 5.8 per cent on a same-store basis, the Auckland-based company said in a statement.

Briscoe opened two Rebel Sports outlets and a Briscoes homeware store in the period, while closing one Briscoes store, one Rebel Sports shop, and two Living & Giving outlets.

Managing director Rod Duke, who owns more than three-quarters of the company, said the retailer ceded some gross margin in its homeware division to "increase sales momentum" whereas the sporting goods division was tasked with locking in rapid growth in recent years.

Homeware sales rose 8.8 per cent in the quarter to $86.5m while sporting goods sales edged up 2.6 per cent to $54.8m.

"We are satisfied with the positive sales and profit growth achieved for the first three months of our financial year," Mr Duke said.

"Inventory is in good shape, costs have been well controlled and our online business continues to show significant growth in sales and profitability."

Briscoe boosted annual profit 26 per cent to $59.4m in the year ended January 29, widening margins in a retail environment where rival companies have typically struggled to adapt to changing consumer behaviour.

That marked the retailer's seventh year generating a record profit.

The shares were unchanged at $3.85, and have slipped 4.5 per cent so far this year.

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