The Briscoe Group Limited (ASX: BGP) share price could be set to climb higher this morning after posting a 4% increase in total group sales in Q2 2019 indicating strength in the New Zealand retail sector.
What were Briscoe’s quarterly highlights?
Briscoe announced unaudited sales for the 13-week second quarter to 28 July 2019 increased 4.05% year-on-year (YoY) to $152.3 million from the $146.4 million achieved in the prior corresponding period (pcp).
Briscoe’s homeware segment increased sales by 2.32% during the period and the sporting goods segment by 7.61% in what looks like a broadly positive result for the group.
On a same-store basis, the group’s sales for the second quarter ended 28 July 2019 were 3.40% ahead of the same period last year.
On a same-store basis, homeware sales increased by 2.32%, while sporting goods sales increased by 5.62% over the second quarter of last year.
What about on a half-year basis?
Group sales for 1H 2019 were $303.0 million, an increase of 3.34% on the $293.2 million achieved for the first six months of last year.
Briscoe’s homeware segment increased sales by 2.57% during this period and the sporting goods segment by 4.68%.
On a same-store basis, the group’s sales for the half-year ended 28 July 2019 were 2.74% ahead of the same period last year.
The same-store calculation adjusts for two Rebel Sport stores opened by the group at Kerikeri (February 2018) and at Papanui, Christchurch (November 2018), and also for the closure of the Living & Giving Store at Riccarton (March 2018).
On a same-store basis, homeware sales increased by 2.72% for the 26 week period while sporting goods sales were 2.76% ahead of last year.
What does this mean for the Briscoe share price?
Given positive increases in sales for Briscoe as a group and in each individual segment, I’d expect the Briscoe share price to climb higher in early trade.
On both a quarterly and half-yearly basis, Briscoe’s retail volumes are trending upward at a time when Aussie retail data has indicated a softening of market conditions.
Briscoe Group is a New Zealand retail chain with 90 retail stores trading under the Briscoe’s Homeware, Living & Giving, and Rebel Sport brand names.
Overall, the positive sales trend could provide a compelling reason to add Briscoe to a portfolio for retail exposure in a growth environment, particularly given the Briscoe share price has climbed just 8.4% so far this year.
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