Briscoes has delivered a solid result in a tough retailing environment, with increased sales and after-tax profit for its half-year report and its dividend up slightly on last year.
Managing director Rod Duke said although he was pleased with the result, customer confidence had remained weak during the period, with high food prices and petrol inflation, falling or static house prices and worrying economic news from Europe and America which dampened spending and encouraged people to continue to pay down debt.
"Most retailers would be thrilled to be able to report double-digit growth for the bottom line in what continues to be a tough retailing environment," he said in a statement.
Sales were up 2.1% to $194 million, same-store sales increased 4.4%, earnings before interest and tax were up 4.9% to $13.6 million and adjusted after-tax profit was up 11% to $10.3 million.
Briscoes' dividend increased from 3c last year to 3.5c. while its share price after the announcement last week rose about 1.5% to $1.39, but on low volumes.
Forsyth Barr broker Suzanne Kinnaird said Briscoes Rebel Sport did better than expected, but margins in Briscoes Homeware were down slightly.
"While the outlook commentary was cautious we have left our forecasts unchanged, expecting a boost to Rebel's second-half result from the Rugby World Cup," she said.
Craigs Investment Partners broker Peter McIntyre said with no full-year guidance offered, management were suggesting that the uncertainty of the economic environment would continue to make it difficult to accurately predict a result for second-half trading.
Mr Duke said he was "cautiously optimistic" about it but he could see further uncertainty in consumer confidence, meaning continued difficult trading conditions for retailers.
