Briscoe (ASX:BGP) delivers solid sales growth, driven by online channels

Highlights:

• Briscoe reported NZ$367.9 million of sales during the first half of financial year 2022.
• Online channels contributed more than 19% in the total sales of Briscoe.
• The retailer is expected to share its first half results on 14 September 2022.

The ASX-listed retailing company, Briscoe Group Limited (ASX:BGP), on Thursday shared a group sales update via ASX announcement. The dual-listed company has delivered significant growth during the first half of the financial year 2022.

Shares of Briscoe traded last at AU$4.840 per share on the ASX.

Key financial metrics shared by Briscoe

In the last 91 days, ending 31 July 2022, the directors of Briscoe reported unaudited sales of NZ$191.7 million, 3.49% higher than the last year. In the second quarter, the sales of the homeware segment surged by 3.29% to NZ$121.9 million. During the same period, the sales of sporting goods grew by 3.84% to NZ$69.8 million.

In the first half of FY2022, the group sales increased to NZ$367.9 million from NZ$358.4 million recorded last year for the same period. During the first half, the sales in the homeware segment increased by 2.47% and by 2.51% in the sporting goods segment.

Comparing the first half performance of this year with pre-Covid half, the group sales increased by 21.44%.

Image source: © Ivelinr | Megapixl.com

On the results, Rod Duke, managing director, Briscoe, said that the first quarter of the year was affected by the Omicron outbreak, and it had impacted the traffic in mortar and bricks store. In March and February, the impact peaked as Omicron spread throughout the country.

Moving to the second quarter, Duke said that the performance was affected by the negative economic sentiments arising from increased cost of living, fuel price inflation, the surge in the interest rate and a decline in house prices.

Online channels drove Briscoe’s performance

Duke highlighted that online channels of the business delivered spectacular results during the half. Sales through online channels cover 19.4% of the total sales. In the previous year, it made up only 16.2% of the total sales.

Outlook shared by Briscoe

The supply chain-related issues have been flagged by Briscoe and expects these issues to continue for the rest of the year. To handle the same, Briscoe has started to store inventory in advance. It has increased the cost of storage, but it positively impacted sales.

The company is optimistic that it will deliver a full-year net profit after tax (NPAT) above its last year’s NPAT.

Duke shared that there are significant opportunities during the third quarter of this compared to the previous year, as last year was affected by the store’s enforced shutdowns in Auckland, New Zealand. Due to these shutdowns, over 3500 store trading days were lost.