Photo: RNZ / Simon Rogers
Retailer Briscoe Group has reported record full year sales, though profit fell nearly 4 percent to match a drop in profit margins.
The owner of Briscoes Homeware and Rebel Sport said both brands delivered positive sales growth.
Key numbers for the 12 months ended January compared with a year ago:
- Net profit $84.8m vs $88.4m
- Revenue $792.0m vs $785.9m
- Gross profit margin 42.40% vs 44.02%
- Full year dividend 28.5 cents per share vs 27.5 cps
"We're delighted to have produced another year of record sales against a macro retail environment which has seen many retailers struggling to hold their ground," managing director Rod Duke said.
"It's significant that the group was able to grow sales across both the first and second halves as well as across each of the trading segments, homeware and sporting goods.
"The combination of a strong core business and the execution of strategic initiatives by an extremely talented team has again proved to be a great formula for success - delivering a bottom line equal to 95 percent of last year's record net profit after tax."
However, he said it was a challenge to maintain profit margins amid the economic downturn.
This year's result included $2.1m after tax of dividends from the group's investment in retailer KMD Brands, which matched the year earlier return.
Duke said the group continued to invest in its online platform, with online sales representing nearly 19 percent of total sales.
"Significant progress has also been made during the year in relation to establishing a new distribution centre in south Auckland.
"As local and international supply chains have returned to more normal, reliable and cost-effective levels of service compared to the disruption of recent years, the team has been able to tighten the levels of inventory held by the group," he said adding the value of inventories fell by nearly $13m to $104.9m.
He said the outlook for the retail sector was uncertain, though the group remained confident.
"We remain cautious as to the retail environment with ongoing uncertainty in relation to economic conditions, customer sentiment and cost pressures," Duke said.
"We do not underestimate just how challenging trading could be but are very confident in relation to the group's ability to continue to perform and deliver superior results."