Briscoe Group delivered its fourth consecutive quarter of positive sales growth, while online trading and sporting goods helped offset a cautious consumer environment. The retailer now expects full-year reported net profit after tax of up to $55 million, although distribution centre and SAP investment costs continue to weigh on earnings.
- Third-quarter sales rose 1.98% to $174.4 million
- Year-to-date sales increased 1.17% to $548.6 million
- Sporting goods sales grew 3.99% and homeware sales returned to growth
- Online sales rose 5.77%, reaching 19.17% of group sales
- Full-year reported NPAT expected to be up to $55 million, subject to fourth-quarter trading
Fourth Quarter Holds the Key to Briscoe’s $55 Million Profit Ceiling
Briscoe Group Limited (NZX/ASX:BGP) has put a figure on the financial year ahead of its most important trading period, saying reported full-year net profit after tax could reach up to $55 million. That is an upper expectation rather than a firm forecast, and the final result remains dependent on fourth-quarter trading.
The retailer reported unaudited third-quarter sales of $174.4 million for the 13 weeks to 25 October 2026, up 1.98% from $171.0 million a year earlier. Year-to-date sales reached $548.6 million, a 1.17% increase, extending a run of positive growth in every quarter: 1.37% in the first quarter, 0.25% in the second and 1.98% in the third.
Sporting Goods Lead as Homeware Returns to Growth
Sporting goods remained the stronger division, with sales up 3.99% during the quarter after rising 4.84% in the second quarter. Homeware sales increased 0.82%, reversing a 2.17% decline in the previous quarter. The company attributed the sporting goods performance to the Rebel Sport brand and said both homeware brands recorded positive growth during the period.
The result builds on the second-quarter sales growth, when sporting goods and online trading provided resilience while homewares remained under pressure. Briscoe said the consumer environment is still challenging, with subdued discretionary spending and heavy promotional activity limiting the operating backdrop.
Online Sales Gain Ground as Margins Stabilise
Digital sales grew 5.77%, or $1.8 million, during the quarter. Homeware online sales rose 6.41% and sporting goods online sales increased 4.34%, lifting online’s share of total group sales to 19.17% from 18.48% a year earlier.
Briscoe also reported that gross profit performance continued to improve, with the decline in gross profit percentage narrowing progressively against prior corresponding periods. The company said it was balancing sales growth against margin protection in a market that remains “extremely promotional”, but did not provide a specific third-quarter gross profit percentage.
Distribution Centre and SAP Costs Still Weigh on Earnings
The sales improvement is arriving alongside a substantial investment programme. Briscoe said operating costs from its new North Island distribution centre and expenditure on the SAP S/4HANA upgrade are still affecting current-year earnings, ahead of the expected benefits. The distribution centre is operational, with its automation programme moving towards full commissioning and optimisation; the company expects the financial benefits to become increasingly evident in the 2027/28 financial year.
During the quarter, Briscoe relocated its Rebel Sport Riccarton store to Tower Junction and refurbished its Colombo Street store in Christchurch. It also completed the incorporation of Chemist Warehouse into the existing Briscoes Homeware footprint at Panmure, where Chemist Warehouse is now trading. Those projects add operational detail to the broader effort to improve the productivity of the existing store and property network, but the immediate test remains whether sales and gross profit can carry the added cost base through the fourth quarter.
Bottom Line?
The next result must show whether improving sales momentum and gross profit can outweigh the investment costs before the distribution centre and SAP benefits arrive.
Questions in the middle?
- Can fourth-quarter trading support the upper end of the up-to-$55 million reported NPAT expectation?
- Will gross profit percentage continue recovering while promotional pressure remains elevated?
- How quickly will the North Island distribution centre and SAP upgrade translate into measurable efficiencies?