Bongo666 wrote:So Briscoe Group thinks the time is right to buy a distressed retailer (see attachment below) but CEO and founder Rod Duke has telegraphed this many times before and still no movement. Meanwhile his cash piles up.
It is clearly different this time. Which retailers could be his target?
Well, you dont have to be Einstein to figure that out, just have a look at your local mall and see which retailers are selling (at a profit) and which are not
Retailer Briscoe Group expects to virtually double its profits in the latest half year.
In releasing six-monthly sales figures for the period to July 26 today, Briscoe managing director Rod Duke said the company expected after tax earnings for the period of at least $6 million compared with $3.1 million at the same time last year.
Last year's half-year earnings were hit hard by the recession and downturn in consumer spending, with profits having tumbled from $10.5 million in the previous comparable period. Briscoe operates the Briscoes Homeware, Rebel Sport and Living & Giving stores.
Duke said today that in the latest trading period the gross profit margins had been higher than at the same time a year ago.
Stock levels were in great shape and the benefits of operating efficiencies were coming through.
"These efficiencies have been generated from the cost minimisation initiatives implemented progressively since early last year as well as from the changes we have made this year to the structure of our store management," Duke said.
"We are pleased with the result for this second quarter and the resulting half year performance which has been achieved in a retail market that continues to be highly competitive and unpredictable; particularly for our specialty homeware stores."
Total sales for the half year were $185.3 million, up 1.83 on the $182 million at the same time last year.
The Group's homeware segment decreased sales very marginally during this period but the sporting goods segment increased sales by 6.2 percent.
On the comparing-apples-with-apples, same store basis the group's sales were 0.9 percent ahead of the same period last year.
On a same store basis homeware sales decreased by 1.4 percent, while sporting goods sales increased by 6.2 percent over the first half of last year.
For the second quarter period group sales were $95.1 million, up 3.7 percent on the same quarter of last year.
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