The Briscoe Group’s first quarter results have revealed Rebel Sport is the company’s star player, growing almost 11 percent from last year. This continues a profitable streak for the company, which posted an after tax profit of $39.3 million in January.
Sales for its sporting goods hit $46.7 million, while homeware sales at Briscoes increased 0.5 percent to $73.1 million.
Profitability was tracking 4.3 percent higher than last year in the quarter ended 26 April 2015.
Sales were $119.8 million, versus $114.8 million in 2014.
Same store sales were 3.4 percent above last year.
The adjustment accounts for two new Rebel Sport stores opened in Coastlands, Paraparaumu and Hornby, Christchurch in the last year.
Group managing director Rod Duke says the stellar sales are a result of inventory management, new stock receipting technology, effective marketing and refining its product range.
“This quarter has delivered a double digit sales growth performance from Rebel Sport and a satisfactory performance from homeware in markets that remain highly competitive with relentless promotional activity,” Duke says.
He says the company has also benefited from foreign exchange cover taken out last year when the New Zealand dollar against the US dollar.
Analysing various price-cost-quantity scenarios has helped manage challenges, he says.
“Briscoe Group has made a very positive start to the current financial year,” he says.
Briscoe Group previously reported a net profit after tax of $39.3 million for the year ended 25 January 2015.
This was up 17 percent from the previous year.
At the time he noted the challenging retail landscape, but said the company was “cautiously optimistic” for the year ahead.
The quarter results show its stores so far have defied the challenges.
Duke credits his business’ success to a focus on quality goods in a recent interview with NZRetail Magazine.
“I just don’t sell rubbish and that’s the differentiator I think.
“You know – the proposition of really good quality famous brand name products [in Briscoes stores] at real good prices is just irresistible,” Duke said.