Retailer Briscoe group expects to double its after-tax profit to "at least" $6.5 million when it reports its half-year results in early September.
This is despite booking a $820,00 asset impairment on some outlets.
The combination of the first and second-half profit levels indicate expectations of a minimum $15 million on the full-year bottom line to be reported in early September, about 30% up on its full-year 2008 result.
The news buoyed retail stocks yesterday, with Hellaby, The Warehouse, Hallenstein Glasson and Briscoes all initially trading up in a 1%-4% range.
In a directors' update yesterday, Briscoe group managing director Rod Duke said the intended impairment adjustments were from four specialty stores which were unable to achieve acceptable levels of profitability, dragging a potential $7.3 million profit back to $6 million.
Briscoe booked a $3.1 million after-tax profit for the same period last year.
"All other [58 homeware] stores in the group are trading well, notwithstanding the challenges of the difficult retail market," Mr Duke said.
Mr Duke was optimistic Briscoe's second-half performance would exceed the $8.5 million after-tax profit booked for the same period last year.
