Briscoes has mirrored the surprise result of Hallenstein Glasson - forecasting an annual profit rise of more than 70% - following lacklustre flat trading results of The Warehouse and Smiths Group recently.
While the New Zealand Retailers Association has predicted another difficult year ahead for retailers in general, with only small gains on last year's negative sales figures, the Christmas period trading for Briscoes and Hallensteins (forecasting a 50% increase on half-year profit) has underpinned a revival in their fortunes.
Briscoes' unaudited sales for the three months to January were $147.1 million, up 14.32% on the $128.7 million reported for the corresponding period a year earlier.
Managing director Rod Duke said he expected to report a full-year tax paid group profit of more than $20 million - a more than 70% increase on last year's $11.6 million profit.
"With the strong finish to the financial year we are confident of producing a second-half performance which, as previously indicated to the market, will be significantly ahead of the second-half profit reported for last year," Mr Duke said in a statement yesterday.
Brokers from Craigs Investment Partners and Forsyth Barr focused on Briscoes having carefully selected stock inventories in order to maintain profit margins.
Forsyth Barr broker Suzanne Kinnaird said Briscoes' sales were ahead of market expectations, following on from the good results from Michael Hill International and Hallenstein Glasson.
"The Warehouse had flat sales over the same period which could indicate Briscoes has taken some market share in the homewares space," she said.
"This should lead to the best second-half result for Briscoes since they listed, which is rather amazing given the environment they have achieved it in," Ms Kinnaird said.
Craigs broker Peter McIntyre said Briscoes management appeared to have kept stock inventories at better levels than some competitors and maintained profit margins.
However, he cautioned the November 2006 acquisition of Living & Giving was not doing well.
Mr Duke expected a $1 million impairment adjustment of up to $1 million for under-performing assets to come out with the final result.
Homeware sales increased 15.95% to $102.2 million and sporting goods sales rose 10.78% to $45.0 million, with total groups sales for the quarter 8.53% up on the previous year, Mr Duke said.
• Briscoes' full-year audited report is scheduled for release on March 9
