Briscoe Group delivers record sales despite challenging retail environment

About Briscoe Group Limited

Briscoe Group Limited (ASX: BGP) is one of New Zealand’s leading specialty retailers, operating through two primary brands,  Briscoes Homeware and Rebel Sport. The company operates a nationwide retail network supported by a growing e-commerce platform, offering a wide range of homeware, sporting goods and lifestyle products.

The Group’s continued sales growth reflects the strength of its brand positioning and value-focused retail model. Despite pressure on discretionary spending across the retail sector, Briscoe Group maintained positive growth across both operating segments while preserving strong cost discipline and inventory management.

Sales performance

For the 52-week period ending 25 January 2026, Briscoe Group reported total sales revenue of $798.8 million, representing a 0.9% increase compared with the previous year.

Both business segments contributed to the sales growth. The homeware division generated $496.8 million in revenue, increasing 1.42% year-on-year, while the sporting goods division recorded sales of $302.1 million, rising 0.13%.

Management noted that achieving positive growth in both divisions during a period of constrained consumer spending highlights the resilience of the Group’s retail proposition and the continued strength of its brands.

Profitability and margins

Briscoe Group reported Net Profit After Tax of $59.2 million, slightly lower than the $60.6 million reported in the prior year. The modest decline reflects ongoing pressure on retail margins due to competitive pricing and promotional activity across the sector.

Gross profit margin for the year declined to 39.23%, compared with 40.37% in the previous year, although the rate of margin decline improved in the second half of the financial year.

Management attributed the margin pressure primarily to the challenging retail environment, but highlighted that targeted promotional strategies and improved trading execution helped stabilise performance as the year progressed.

Online growth and digital investment

E-commerce continues to play an increasingly important role in Briscoe Group’s retail strategy. During the financial year, online sales represented 20.04% of total Group revenue, marking the first time digital sales have exceeded 20% of overall sales.

The growth was supported by several key technology initiatives implemented during the year, including the rollout of a new Adobe commerce platform and the launch of a Direct-to-Customer marketplace platform through Marketplacer.

These platforms aim to improve the online customer experience, expand product availability, and enhance supplier participation within the company’s digital ecosystem.

Management believes the continued optimisation of these systems will support further growth in online sales in the coming years.

Balance sheet strength

Briscoe Group maintained a strong financial position throughout the financial year, ending the period with cash and bank balances of $130.3 million and no term debt.

The Group also demonstrated strong inventory management, with total inventories reduced to $90.8 million, down $8.9 million from the previous year. Improved stock quality and inventory turnover are expected to reduce clearance pressure and support margin performance in future periods.

Operating costs remained tightly controlled, with total store and overhead expenses increasing by only 1.2% year-on-year, despite inflationary pressures and higher wage costs across the retail sector.

Strategic investments and store development

During the year, Briscoe Group invested $50.4 million in capital expenditure, supporting major strategic initiatives across its retail network and supply chain.

One of the Group’s most significant investments is the development of a new distribution centre at Drury in Auckland, which is expected to significantly enhance supply chain efficiency, inventory flow and operational productivity once completed.

The company also continued to invest in its retail footprint, opening its first Rebel X flagship store, which delivers an immersive sports retail experience and introduces new merchandising concepts designed to enhance customer engagement.

Several store refurbishments and retail upgrades were also completed during the year as the Group continues to modernise its store network.

Outlook

Looking ahead, Briscoe Group acknowledged that the retail environment may remain challenging in the near term, with economic uncertainty and global geopolitical developments potentially impacting consumer confidence and spending.

However, management remains confident that the company’s ongoing strategic investments will support long-term growth. The benefits of major initiatives, including supply chain upgrades, advanced merchandising systems and enhanced digital capabilities are expected to progressively contribute to improved operational efficiency and profitability over the coming years.

Briscoe Group believes these initiatives position the company strongly to deliver profit growth and return to record earnings levels over the medium term as the benefits of its investment programme begin to materialise.