Briscoe Group sold more homewares and sporting goods in the first half of this year than in any first half before, but it made less money doing it. The company behind Briscoes and Rebel Sport reported on Wednesday a net profit after tax of $27.6 million for the 26 weeks to 26 July 2026, down 5.9 percent from $29.3 million a year earlier.
Group sales rose 0.79 percent to a record $374.2 million, up from $371.3 million. It was the third quarter in a row of sales growth for the retailer.
Group managing director Rod Duke said in the company’s results release, “Delivering record first-half sales, alongside a third consecutive quarter of sales growth is particularly encouraging given the continued caution in household discretionary spending.”
The two halves of the business moved in opposite directions. Sporting goods sales at Rebel Sport rose $3.6 million, or 2.56 percent, to $145.1 million. Homewares sales at Briscoes slipped $0.7 million to $229.1 million.
Briscoe Group credited a busy sporting calendar for the Rebel Sport lift. The release pointed to the FIFA World Cup, Auckland FC’s A-League title, the Warriors’ strong NRL season and the All Blacks’ home programme in the Nations Championship as events that drew customers into stores. Homewares had a quieter time. A milder start to winter cut demand for heaters, and luggage sales were softer as international uncertainty weighed on travel plans.
Online sales grew 2.07 percent to $73.4 million, or 19.6 percent of all group sales. Homewares online sales rose 1.11 percent to $48.1 million and sporting goods online sales climbed 3.96 percent to $25.3 million.
The squeeze on profit came mostly from margins and the cost of a large investment programme. Gross profit fell to $152.9 million from $153.8 million, and the gross profit percentage dropped 58 basis points to 40.85 percent. That was still a smaller fall than the business had been reporting, and Duke described the slowing decline as one of the better signs in the result.
“Retail conditions remain highly promotional, but the work undertaken across sourcing, inventory management, product mix and promotional execution is gaining traction,” he said. He added that the progress came despite a weaker New Zealand dollar, which makes imported stock more expensive, and continuing uncertainty in global supply chains.
The biggest single project is a new North Island distribution centre, which is now open and handling more stock than the old site did. The group spent $31.9 million on capital projects in the half, and $28.1 million of that went on the distribution centre. The result carried $1.9 million of extra operating costs from the new centre and $0.9 million of one-off spending on an upgrade to the SAP S/4HANA business software system. A $2.0 million accounting gain from surrendering the lease on the old distribution centre early offset part of those costs.
Store expenses rose just 0.94 percent despite higher power, depreciation and occupancy costs, while administration expenses rose 3.39 percent. Net finance costs climbed to $7.8 million from $5.9 million, which the company put down to earning less interest on smaller cash balances at lower rates and paying more lease interest.
Cash on hand fell to $74.4 million from $119.8 million a year earlier, in a half when the company was paying for its new warehouse. Briscoe Group noted that about $26 million of payments to suppliers counted in its payables at balance date went out by 31 July. Inventory closed at $104.8 million, $1.2 million lower than a year ago.
Directors held the interim dividend at 10.0 cents a share, the same as last year’s interim payment. It will be paid on 8 October to shareholders on the register at 5pm on 25 September.
Chair Dame Rosanne Meo said, “The Board continues to take a measured approach to capital allocation.” She said the dividend recognised the group’s ongoing profitability and financial strength while leaving room to finish the investment programme.
The company is also squeezing more out of its shops. Briscoes Homeware in Henderson and Rebel Sport in Westgate were refitted during the half, finishing the major upgrades across West Auckland. At Briscoes Panmure, the new distribution centre has meant less stock needs to be held in the store, and part of the building has been sublet long term to Chemist Warehouse.
Three more store projects are planned for the second half. Rebel Sport on Colombo Street in central Christchurch will be refurbished, and a new Rebel Sport has opened at Tower Junction as the brand moves out of Westfield Riccarton. In Upper Hutt, the existing Briscoes store will be reworked so it can also house Rebel Sport, bringing the sporting goods chain to the area for the first time.
The result lands in a tough week for fashion and general retail. RNZ reported that Australian fashion label Cue, which has three stores and a department store presence in New Zealand, went into receivership on Tuesday. Retail NZ figures cited in the same report showed card spending in August was flat on a year earlier, with apparel spending down 2.5 percent.
Duke did not promise a quick turnaround. “The pace of the consumer recovery remains difficult to predict and discretionary spending is likely to remain sensitive to household cost pressures and promotional activity,” he said. He argued the group enters the second half with sales momentum and an improving margin trend, and is well placed to benefit if shoppers start spending more freely.
For investors, the half shows a business that is holding its customers in a weak market while taking a short-term hit to fund warehouse automation, new software and store changes. Whether the investment pays off will show up in margins over the next year or two, once the distribution centre is fully running and the refitted stores have had time to trade.
Are you shopping at Briscoes and Rebel Sport as much as you were a year ago, or are you waiting for the sales? Share your thoughts in the comments below.
This article was written by AI, briefed to report the facts, hopefully without some of the bias people bring to the job 🙂
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