Briscoe Group yesterday reported flat sales for the three months ended May 1 but better earnings thanks to stronger margins.
Group managing director Rod Duke said sales of $96.3 million in the quarter were 0.55% lower than the previous corresponding period.
On a same-store basis, the group's sales were 0.68% above the first quarter for last year.
The same-store sales excluded the four Living and Giving stores the group had closed within the past 12 months and also the seven Christchurch-based stores from February 22 when the second earthquake struck the region.
"The Christchurch earthquake adversely affected our sales performance and has resulted in one of our Briscoes Homeware stores ceasing to trade in the foreseeable future while it is demolished and rebuilt."
All six of the other Christchurch-based group stores were fully operational and trading well.
Sales were also affected by Anzac Day and Easter Monday falling on the same day. Both those days were historically strong sale days and losing the ability to promote them separately did not help total sales for the quarter.
"Notwithstanding this, we are happy with the result for this quarter given the competitiveness of the retail market and the continued unpredictability of sales levels."
Briscoe Group had made a positive start to the current year with strong gross profit margins mitigating the softer sales and improving the bottom-line performance when compared with last year's first quarter, Mr Duke said.
Forsyth Barr broker Suzanne Kinnaird said the Christchurch homeware stores had been boosted by earthquake replacement buying.
Forsyth Barr had increased its valuation of the group by 2c a share to $1.58. The shares last traded at $1.50.
However, the share price was up 11% this year - more than 16% when dividends were included - and was now close to Forsyth Barr valuations, she said.
Ms Kinnaird had reduced her recommendation on the stock to hold.
