Briscoe Group has slashed its margins to remain competitive in a challenging environment, says MD Rod Duke. Photo: RNZ
Briscoe Group's third quarter sales are holding up but margins are down amid heavy discounting by competitors.
The Rebel Sport and homewares third quarter sales for the 39-weeks ended 27 October were half a percent (0.51 percent) down on the year earlier at $546.1 million.
But this year's third quarter sales excluded its October Labour Day promotion, which would have otherwise seen sales up about half a percent (0.53 percent) on the year earlier.
Group managing director Rod Duke said sales had been positive across the homewares and sporting goods segments, which "is an outstanding achievement" given the economic environment.
"As with all retailers, pressure on margins and costs continue to impact our bottom line.
"We remain hopeful that the recent decreases in the OCR will improve consumer confidence and increase retail spend for the final crucial quarter of our financial year."
However, the company had slashed its margins to remain competitive in a challenging environment, he said.
"Currently we believe the group's full-year net profit after tax will fall in the range of $70m - $77m reflecting the high level of trading uncertainty anticipated across the fourth quarter which traditionally produces more than 30 percent of the group's sales revenue."
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