Briscoe Group Limited, the New Zealand company making a hostile bid for the 150-store Kathmandu outdoor specialty chain, announced unaudited sales reached NZ$124.2 million ($88 mm) for the 13 week period ended July 26, an increase of 6.47 percent from the NZ$116.7 million reported for the second quarter of last year.
The Group’s Homeware segment increased sales by 5.25 percent during this period, while sales grew 9.22 percent at the Sporting Goods segment, which operates more than 30 Rebel Sport locations in New Zealand. On a same-store basis the Group’s sales for the second quarter ended 26 July 2015 were 5.44 percent above the second quarter for last year. The same-store sales calculation for the second quarter adjusts for the two new Rebel Sport stores opened by the Group at Coastlands (December 2014) and Hornby (March 2015).
On a same-store basis, Homeware sales increased by 5.25 percent for the quarter while Sporting Goods sales were 5.89 percent ahead of last year.
The July quarter sales figure takes unaudited Group sales for the six months ended July 26 to NZ$244.0 million, an increase of 5.41 percent on the NZ$231.5 million ($163 mm) reported for the first six months of last year.
The Group’s Homeware segment increased sales by 3.01 percent during this period and the Sporting Goods segment by 10.13 percent. Both gross margin dollars and percentage will finish significantly higher than for the first half of last year reflecting; the strong sales performance in Sporting Goods and winter seasonal Homeware product, the benefits being realized from a new stock scanning system implemented last year throughout all Briscoes Homeware and Rebel Sport stores and continued improvements to supply chain processes.
On a same-store basis the Group’s sales for the half year ended 26 July 2015 were 4.44 percent ahead of the same period last year. On a same-store basis Homeware sales increased by 3.01 percent, while Sporting Goods sales increased by 7.27 percent over the first half of last year.
Group Managing Director Rod Duke said management was very pleased with the Group’s operational and financial results for the first half of this financial year.
“Our bottom line is tracking well ahead of last year despite the late start to winter and the high levels of competitiveness across the retailing sectors in which we operate," Duke said. "The continued profit improvements flow from the increased levels of sales we are generating at significantly improved margins, as well as the ongoing improvements we are making in efficiency throughout the Group.
Sales growth through Briscoes online channels is growing at around 40 percent compared to last year and now represents more than 4 percent of total Group sales.
“We are expecting to report a record half year Net Profit After Tax (NPAT) of at least NZ$20 million," said Duke. "This would represent an 8 percent increase over last year’s result of NZ$18.5 million, but more than 19 percent in normalized NPAT terms, when adjusted for the Business Interruption insurance recovery booked last year, and the costs incurred to date this year in relation to the takeover offer for and the acquisition of shares in Kathmandu Holdings Limited.”
