Briscoe Rises Most in Two Years on Profit Leap: Wellington Mover
Feb. 2 (Bloomberg) -- Briscoe Group Ltd., a New Zealand homeware and sporting goods retailer, rose the most in two years in Wellington after saying full-year profit probably rose at least 25 percent.
Net income will be at least NZ$27 million ($22 million) in the year ended Jan. 29 from NZ$21.6 million a year earlier, the Auckland-based company said in a statement today. The stock rose as much as 7.8 percent, the most since February 2010.
Briscoe’s outlook adds to signs that shoppers reacted to lower prices in the busy Christmas period, adding to retailers’ sales and margins. In November, the company said full-year profit would exceed NZ$24 million after a surge in spending on apparel and equipment by fans attending the Rugby World Cup in September and October.
“The market responded very favorably to our marketing initiatives during the lead up to and throughout the crucial Christmas trading period,” Managing Director Rod Duke said in a statement sent to the stock exchange.
“While competition remained fierce across most retail sectors, which placed some strain on gross margins, sales for the group were consistently strong during December and also through January,” he said.
The stock rose 8 cents, or 5.6 percent, to NZ$1.50 at 1:13 p.m. in Wellington. The company reports earnings on March 9.
Full-year sales rose 4.5 percent to NZ$438 million, the company said today. After adjusting for store closures, including outlets demolished or under repair after the Christchurch earthquakes, sales rose 8 percent.
Fourth-quarter sales increased 4.7 percent to NZ$146 million. After adjusting for closures, same store sales gained 9.1 percent in the quarter.
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--Editors: Chris Bourke, Iain Wilson
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