Briscoes (NZX:BGP) posts sales growth of 27% in Q3FY22

Highlights

• The Briscoe Group reported sales growth of 27% in Q3FY22.
• Third-quarter sales grew around 27% despite several headwinds.
• Homeware and sporting sales growth took the overall lead in sales.

New Zealand-based retail company Briscoe Group Limited  (NZX:BGP) reported that sales had increased by 26.7%, to NZ$175.5 million, in the third quarter (from 1 August to 30 October) of the financial year 2022 (Q3FY22).

The group announced its results on Thursday (3 November 2022), reporting that all of its divisions had performed well. While homeware sales increased 23.2% to 107.7 million, the sporting goods division clocked sales of 67.8%, up 33%, up from NZ$51.1 million in the prior comparable period.

According to the group, the third quarter of last year (2021) was impacted by Auckland and other store closures due to various level lockdowns. However, the company noted that the 25% increase in the current quarter was more than the increase in the comparable period in 2019.

The managing director of Briscoes, Rod Duke, said that the quarter saw growth in sales despite a challenging economic environment and factors like supply chain disruptions, increasing cost of living, and a declining Kiwi dollar. He said that posting a 26% increase in sales against this background was an achievement.

Along with the Q3FY22 performance, the company also provided its year-to-date (YTD) sales.

Highlights of YTD sales, January–October

• Total group sales up 9.37 to NZ$543.5 million
• Homeware sales up 8.51%
• Sporting goods sales growth of 10.80%
• Online sales growth of 19%
  
  

Online sales

As per the company update, there was growth of 19% in online sales for the nine months of FY22. With the surge in Omicron in the early part of the year, the foot traffic to the stores reduced and the online platform offered an alternative to the customers. Online sales grew 22.93% in the first half of the year and was 19% of the total group sales.

As the company enters the fourth quarter of the year, it is expecting to finish the year with a net profit after tax higher than last year’s NZ$87.91 million.

Stock update

On 4 November 2022, the company’s stock was trading up by 1.40%, at NZ$5.080, at the time of writing this article.