Briscoe Group third quarter sales rise 1.98% to $174.4 million
In its 3rd Quarter (13 weeks to 25 October 2026) trading update, Briscoe Group recorded sales of $174.4 million, up 1.98% on the $171.0 million reported for the corresponding period last year. The result was the fourth consecutive quarter of positive Group sales growth.
Year-to-date sales for the 39 weeks to 25 October 2026 reached $548.6 million, an increase of 1.17% on $542.3 million. Group Managing Director Rod Duke noted that the company achieved positive growth in every quarter this year.
The quarterly progression shows sales growth building through the year, even as the retail environment stayed challenging.
| Period | Sales | Prior period | Growth |
|---|---|---|---|
| Q1 | n/a | n/a | 1.37% |
| Q2 | n/a | n/a | 0.25% |
| Q3 (13 weeks) | $174.4M | $171.0M | 1.98% |
| Year-to-date (39 weeks) | $548.6M | $542.3M | 1.17% |
Rod Duke, Group Managing Director
“We are pleased with the improvement in sales growth achieved during the third quarter, particularly given the challenging retail environment which has continued to characterise much of this year…”
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Sporting goods and homewares performance
Sporting goods leads the way
Sporting goods recorded sales growth of 3.99% for the quarter, following 4.84% in the second quarter. Year-to-date growth for the segment was 3.00%.
Duke attributed the performance to the ongoing strength of the Rebel Sport brand, together with the efforts of the merchandise, marketing and store teams in responding to changing customer needs.
Homewares returns to growth
Homewares grew 0.82% for the quarter, compared with a decline of 2.17% in the second quarter. Year-to-date growth was 0.06%.
Duke said consumers remain cautious with discretionary spending, but noted positive sales growth across both brands as the company heads into its most important trading period.
Online and gross profit
Online sales contributed to the result across both trading segments:
- Group online sales rose 5.77%, representing growth of $1.8 million
- Homeware online sales increased 6.41%
- Sporting goods online sales increased 4.34%
- Online sales represented 19.17% of total Group sales, compared with 18.48% last year
Gross profit performance continued to improve, extending the trend of progressively narrowing the decline in gross profit percentage relative to prior corresponding periods. Management described the market as extremely promotional.
What the strategic investments mean for earnings
Store network progress
Briscoe reported the following store network developments during the quarter:
- The Rebel Sport Riccarton store was relocated to Tower Junction in Christchurch.
- The Rebel Sport Colombo Street store in Christchurch was refurbished.
- Chemist Warehouse is now trading within the existing Briscoes Homeware footprint at Panmure.
Duke described the Panmure project as a step in the strategy to maximise the productivity of the existing store network and improve returns across the property portfolio.
How a distribution centre and ERP upgrade affect retail profit
A distribution centre is a warehouse that receives stock from suppliers and sends it on to stores. Automating parts of that work can lower handling costs and move stock faster.
An ERP (enterprise resource planning) system is software that links functions such as inventory, purchasing and finance in one place. Briscoe’s investments include a new North Island distribution centre and an upgrade to SAP S/4HANA, an ERP platform.
Profit guidance and headwinds
Based on trading to date, the Group currently anticipates full-year reported net profit after tax of up to $55 million. The final outcome remains dependent on fourth quarter trading.
Management pointed to several pressures on profitability:
- Elevated fuel prices
- Subdued discretionary spending
- A highly promotional market
- Continued pressure on the New Zealand dollar
- Uncertainty surrounding the general election, which may also have contributed to consumer caution
- Operating costs of the new North Island distribution centre and expenditure on the SAP S/4HANA upgrade
Those investment costs continue to affect current-year earnings, ahead of the more substantial financial benefits expected from them. Briscoe anticipates the benefits will become increasingly evident during the 2027/28 financial year.
Rod Duke, Group Managing Director
“With the new distribution centre now operational and its automation programme progressing towards full commissioning and optimisation, we remain confident in the significant efficiencies and financial benefits these investments are expected to deliver…”
What happens next for Briscoe
Three items stand out for investors following the update:
- Fourth quarter trading: The critical fourth quarter is now underway, and trading performance will determine the final full-year outcome, with net profit after tax of up to $55 million currently anticipated.
- Distribution centre automation: The automation programme is progressing towards full commissioning and optimisation.
- Financial benefits of the investments: These are expected to become increasingly evident during the 2027/28 financial year.
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