ASX retail share, Briscoe Group Limited (ASX: BGP), yesterday released a market update regarding the company's half-year sales and profit. The Briscoe share price rose 5.2% to $3.25 on the news.
What does Brisco Group do?
Briscoe operates over 85 stores throughout New Zealand within two retail sectors, homewares and sporting goods. It operates under three brand names Briscoes Homeware, Living & Giving and Rebel Sport (New Zealand). The company generated sales revenue in the Group's latest financial year in excess of $650 million. Briscoe also owns the fourth largest stake in Kathmandu Holdings Ltd (ASX: KMD).
The market update
The directors of Briscoe advised the ASX that they had witnessed unexpected sales increases. Furthermore, the cost saving measures that were implemented by the company as a result of COVID-19 have positively impacted the business. The Briscoe share price has jumped following the conclusion of lockdowns in New Zealand.
While it remains unlikely that the Group will achieve last year's half-year sales and profit, Briscoe now expects the first half results to be closer to last year's. This is closer than indicated in their previous announcement, when the company reported a 35.6% hit to revenue.
Managing Director, Rod Duke, noted in yesterday's update that the company's "primary focus has not altered from the outset of these challenging times – the health and wellbeing of our team and customers and the protection of existing jobs and incomes have been upper most priorities for the Board and leadership team".
What now for the Briscoe share price?
The Briscoe share price has suffered at the hand of the pandemic, falling 14.5% so far this year. However COVID-19 continues to recede in New Zealand with the country recording no new cases yesterday. Briscoe shareholders will be hoping the company can continue its upturn in sales, as it looks to benefit from more generous market conditions. Briscoe will provide its 2Q update at the end of July.
