Photo: RNZ
The ongoing economic downturn has again hit the profit of retailer Briscoe Group, despite record sales for the first half.
Key numbers for the six months ended July compared with a year ago:
- Net profit $33.2m vs $42.7m
- Revenue $372m vs $369.2m
- Interim dividend 12.5 cents per share maintained from the previous year
The homeware and sports gear retailer's net profit dropped more than 22 percent compared to the same period last year.
Managing director Rod Duke said like all retailers, the company is dealing with profit margin pressure with consumer spending down, but his team has done well to produce a growth in sales.
"Optimising gross profit while maximising sales is a constant focus for the team and they have done a terrific job this half in enhancing the promotional events for seasonal products, particularly for sporting goods, to increase sell-through and protect margins."
He said costs have been controlled to protect the bottom line and are just less than 1 percent higher than last year.
As previously flagged, the group's profit was affected by outdoor good business KMD Brands not paying an interim dividend.
Last year, Briscoes received $1.4 million from KMD, which owns Kathmandu, Rip Curl and Oboz.
Duke said the group remains cautious about the struggling retail environment but it is hopeful that the Reserve Bank's cut to the official cash rate signals a shift.
"We are hopeful that the recent announcement of a lower OCR will mark the beginning of improved consumer confidence and improved retail spend.
"While we will not be able to replicate last year's full year NPAT of $84.2m, I am confident about the group's ability to deliver a strong result in what is unquestionably the most challenging retail environment we have seen for some considerable time."
The half-year profit also includes a one off cost of $7.3m as a result of the government removing commercial building depreciation tax deductions.