Briscoe’s Q3 Sales Slip 1.76% as Homeware Grows and Sporting Goods Falter

• Total group sales down 1.76% in Q3, 0.71% year-to-date
• Homeware sales grow modestly; sporting goods decline notably
• Gross profit margin stabilised through adjusted promotions
• Rebel X flagship store transformation on track for late November opening
• New distribution centre construction progressing, online platform upgraded

Mixed Sales Performance Amid Consumer Pressure

Briscoe Group Limited has reported a modest decline in total group sales for the third quarter ending 26 October 2025, with revenues falling 1.76% to $171 million. Year-to-date sales also slipped by 0.71% to $542.3 million compared to the prior year. The retail environment remains challenging, with consumer sentiment and discretionary spending under pressure, reflecting broader economic uncertainties.

Despite the overall dip, the homeware segment showed resilience, posting a 1.8% sales increase in the quarter and a slight year-to-date growth of 0.49%. Conversely, sporting goods sales declined by 7.33% in the quarter and 2.64% year-to-date, impacted in part by the ongoing transformation of the Panmure Rebel Sport store into the new flagship Rebel X concept.

Strategic Focus on Margin and Inventory Discipline

Group Managing Director Rod Duke highlighted the company’s strategic pivot from chasing top-line growth to stabilising gross profit margins. Early in the quarter, Briscoe adjusted promotional activities to protect margins, successfully reducing the margin decline compared to last year. Notably, the sporting goods segment improved its gross profit margin by over 50 basis points versus the prior year.

Inventory management remains a strength, with total group inventory closing the period over $3 million below last year’s level, setting a solid foundation for the critical fourth quarter. This disciplined approach aims to balance sales growth with profitability, a delicate act amid ongoing cost and margin pressures.

Innovation and Infrastructure Investments Progress

Briscoe is advancing several transformative projects. The Panmure Rebel Sport store’s evolution into Rebel X is on track for a late November launch, promising an elevated retail experience with immersive customer zones and integrated retail media. This flagship store is expected to redefine sports retail in Australasia.

Additionally, the company successfully migrated its online stores to a new Adobe platform and launched the Marketplacer direct-to-customer platform, enhancing its digital capabilities. Construction of a new distribution centre at Drury is progressing well, with completion anticipated in early 2026, which should improve logistics and supply chain efficiency.

Outlook and Market Caution

Looking ahead, Briscoe remains cautiously optimistic. While recent reductions in the official cash rate may bolster consumer confidence and retail spending, the company acknowledges ongoing margin and cost pressures. The full-year net profit after tax guidance remains steady at around $60 million, reflecting a balanced view amid uncertain market conditions.

Rod Duke praised the team’s operational excellence and strategic progress, emphasizing the importance of optimising the sales-margin relationship as the group heads into the pivotal fourth quarter. Investors will be watching closely to see if these initiatives translate into stronger performance in the final months of the financial year.

Bottom Line?

Briscoe’s strategic recalibration and flagship store launch set the stage for a decisive Q4 amid cautious consumer sentiment.

Questions in the middle?

• How will the Rebel X flagship store impact sporting goods sales and margins post-launch?
• Can Briscoe sustain margin improvements while navigating cost pressures in Q4?
• What effect will recent monetary policy changes have on consumer spending in the critical holiday season?