The group, which runs the Briscoes Homewares and Rebel Sports brands in New Zealand, reported an operating profit of $85.16 million for the six months ending July 28, up nearly 5% on the previous corresponding period.
Importantly for investors, the interim dividend was increased 12.5% to 4.5c per share from 4cps last year.
Sales were up 6.2% in the period to $217.4 million, same-store sales growth was up 3.7%, and reported profit was up 12.4% to $14.9 million.
The gross margin percentage decreased slightly to 39.18% from 39.68%, reflecting an extraordinarily challenging beginning to the year as a result of the late start to the winter category sales, managing director Rod Duke said yesterday.
Craigs Investment Partners broker Chris Timms said the market reacted well to the profit announcement, pushing Briscoe shares up 2c on the day.
''This is a credible result in the current environment. We have been wondering about the margins being affected by the warmer winter weather.''
The Warehouse reported on September 13 and Hallenstein Glassons reported on September 26. Both of those were likely to have taken a hit from the warmer winter, he said.
The Rebel Sport clothing sales seemed to have held up.
''This bodes well for the sector. It has been a hard few years for these guys,'' Mr Timms said.
Mr Duke said the number of stores remained unchanged at 80 in the first half of the year but in October, a new Briscoes Homeware store would be opened in Kerikeri.
The group completed counter alignment projects in four homeware and eight Rebel Sport stores this year and all those stores benefited.
During the second half of the year, there would be significant change to the layouts in the Dunedin and Invercargill Rebel Sport stores, he said.
The group's online business continued to grow and during the first half of the year, the focus was on improving product availability as well as improving the delivery time.
Inventory levels at balance date were $69.16 million, $4.56 million higher than the previous period, to accommodate increased online sales, Mr Duke said.
''We look forward to a continued improvement in customer confidence and spend levels during the second half of the year and are cautiously optimistic about the group's performance on the back of improving economic indicators.''
