Briscoe Group Posts NZD 59.2m NPAT on Record NZD 798.8m Revenue

Record Sales Despite Margin Squeeze

Briscoe Group Limited has announced a record NZD 798.8 million in total sales for the 52 weeks ended 25 January 2026, marking a modest 0.93% increase over the previous year. However, net profit after tax (NPAT) declined by 2.3% to NZD 59.2 million, reflecting ongoing margin pressures in a highly competitive retail market.

Both the Homeware and Sporting Goods divisions contributed to the sales growth, with Homeware up 1.42% to NZD 496.8 million and Sporting Goods edging up 0.13% to NZD 302.1 million. This balanced segment performance underscores the resilience of Briscoe’s diversified retail portfolio.

Margin and Cost Management

The gross profit margin contracted by 114 basis points to 39.23%, though the rate of decline eased in the second half of the year. Group Managing Director Rod Duke highlighted targeted promotional adjustments and sharper trading focus as key to reducing margin erosion from 1.54% in the first half to 0.76% in the second half. The company aims for margin recovery in FY2027.

Cost control remained a priority, with total store and overhead costs rising only 1.19% despite inflationary pressures. Inventory discipline also improved, with closing stock down NZD 8.9 million to NZD 90.8 million, reducing clearance risks and positioning the Group well for the year ahead.

Digital Growth and Strategic Investments

Online sales now represent 20.04% of total Group sales, surpassing the 20% threshold for the first time. Key digital initiatives included migration to a new Adobe platform, launch of a Direct-to-Customer marketplace, and enhanced search engine optimisation, all aimed at expanding range and improving fulfilment.

Capital expenditure totalled NZD 50.4 million, primarily funding the construction of a new distribution centre at Drury, Auckland, alongside store refurbishments including the flagship Rebel X store in Mt Wellington. The Group anticipates further capital investment of around NZD 57 million in FY2027 as the distribution centre nears completion.

Dividend and Financial Position

The Board declared a fully imputed final dividend of 10.0 cents per share, maintaining the full-year dividend at 20.0 cents per share. Briscoe Group’s balance sheet remains robust, with cash and bank balances of NZD 130.3 million and no term debt. The company has established a NZD 30 million trade finance facility, with drawdowns expected to support ongoing capital projects.

Outlook Amid Uncertainty

Chair Dame Rosanne Meo acknowledged the challenging retail environment and geopolitical uncertainties, particularly relating to fuel prices and inflationary impacts. Nonetheless, management remains confident that strategic investments in supply chain capabilities and advanced analytics will drive profit growth over the next three to four years, aiming to return to record profit levels.

Briscoe Group’s disciplined execution, combined with its strong brand presence and digital momentum, positions it well to navigate near-term headwinds while building for sustainable long-term growth.