Retailer Briscoes has bounded to a record profit driven by a solid lift in sales and improved margins.
Photo: RNZ
The homeware and sports goods retailer has posted a profit of $73.2 million for the 12 months ended January, in line with its guidance last month, and compared with $62.6m a year ago.
Group sales were 7.5 percent higher to a record $702m.
Managing director Rod Duke said the company had been on something like a roller coaster given the upheaval and uncertainty caused by Covid-19.
"While the recovery across most of New Zealand retailing since the end of lockdown has been significant, the agility shown by the Briscoe Group team to adapt to and leverage the new trading conditions has also been nothing short of incredible."
The result would have been better but for the lack of dividend from its stake in Kathmandu, which was worth $9.5m last year, and its repayment of $11.5m wage subsidies.
Duke said the company increased the amount of stock it imported as a precaution against any disruptions.
"Notwithstanding the widely reported 'pandemic-inflicted' pressures on product sourcing and supply, the strength of our supplier relationships has been incredibly valuable for us in securing consistency of supply."
Group gross margins increased more than 4 percentage points after it looked at the way it managed stocks and promotions.
Online sales grew nearly 80 percent on the year before because of the lockdowns and now accounted for about 19 percent of group sales.
Duke said the company would look to drive growth by improving the shopping experience for customers, reviewing and redesigning its supply chain, and looking for new revenue streams.