Briscoe Group BGP

[Waltzing]

 
"Briscoe Group founder Rod Duke says he has seen a lot of downturns and economic cycles which helps him plan for future events."

https://www.stuff.co.nz/business/131145537/costs-come-under-the-microscope-as-businesses-prepare-for-a-downturn

[Hectorplains]

"Briscoe Group founder Rod Duke says he has seen a lot of downturns and economic cycles which helps him plan for future events."

https://www.stuff.co.nz/business/131145537/costs-come-under-the-microscope-as-businesses-prepare-for-a-downturn

Very different approach to WHS (who are now effectively doubling down on redundancies.)


While casual staff may face reduced hours, he won't be cutting back on permanent staff.

"You've got to have a set of morals - you've got to have a set of rules that you stand by," he says.

"We employ probably 3000 people, which means I've got to look after 3000 families. We have looked after them with no layoffs, no closures, no adjustment of hours, no nit-picking with sick days, right through the Covid crisis and right now things are going to be a little tougher this year than last year.

"I've just got to look after my people. If I look after my people, they're going to stay with me, they're going to love working with me, and they are going to help me create a terrific  business."

[Waltzing]

Is this a defensive stock? surely not?

"Spend Spend Spend .....

"The rise in spending was led by an $80m increase in the durable category, which included furniture, hardware and appliances."
 
Winner() was wondering off somewhere yesterday as retail stats came out?
 
https://www.stuff.co.nz/business/131297342/the-things-we-wont-stop-buying-even-when-were-tightening-our-belts"

[winner (n)]

Share price close today at $4.38

Price been in a steady downtrend since the Sept 21 high of $6.93

Possibly price adjusting to Rod saying next year 'won't be as good'.

I reckon it'll start levelling out about $4.00 / $3.80 - a PE of 10 being more respectable, unlike the high teens it was not that long ago.

[Waltzing]

Rod Briskly going where no retailer has stepped before...

still going up...Briskly...

[winner (n)]

What Briscoes Group sales trend looks like below

Bit flat of late ..... and that's with rampant inflation

You can see why maintaining margins and good cost control a necessity to keep profits up

You cannot view this attachment. 

[Waltzing]

considering this sector was supposed to take a hit last QTR its outstanding!!!

left to right that line is sloping UP UP UP !

and considering the competetive nature of the market and the dire result of "WHATS ITS" name....

come on market Rod is the MAN!! THE BLOKE!

ah ... PERSON!!!!

doesnt sound as good...

 

[winner (n)]

BusinessDesk

Watch out, retailers: Briscoe's Rod Duke is coming for your customers

Rod Duke is quick to expand on how he plans to steer Briscoe Group through a recession – and pinching other retailers' customer base is top of mind.

"The question is just how clever can I be to mitigate some of those effects? The most effective way is to try and steal my competitors' market share," he told BusinessDesk.

Briscoe Group reported that its first quarter unaudited sales on Thursday were $181.2 million – 2.8% higher than the $176.2m Briscoe achieved in the same quarter last year.

The retailer's homeware segment increased by 2.9% to $109.9m while its sporting goods sales increased by 2.78% to $71.3 million.

'Pretty good result'

Duke said the group was happy with the first quarter numbers as Briscoe had decided that if any of its first quarter sales were better than last year, it would be a "pretty good result".

"And some of the numbers that we're seeing from some other participants in our sector have been a bit disappointing," he said. "So, we were thrilled."

Gross margin remains a "major" focus for Briscoe as the group continues to feel the squeeze from the impacts of the current economic downturn.

But Duke said there were "a number of ways" the retailer could protect around half of the 633 basis points gained during the two years ending Jan 2021 and Jan 2022.

This included clearing out non-seasonal stock by "discounting the living daylights out of it" and keeping tabs on the group's aged inventory levels.

"We're doing our level best to buy better, so we're now putting more pressure on our overseas factories in particular to buy a bit better."

'Stealing'

While the group expects it to be difficult for Briscoe to replicate last year's record profit result, Duke was confident Briscoe was "well-placed" to outperform its competition.

"Look, I don't think I'm going to be immune – the whole country is going to be affected in every sector, every workplace," he said.

"But it's just a question of how clever I am at stealing someone else's customers – so, encouraging customers to shop with me rather than some of my competitors."

Redundancies as a belt-tightening measure aren't on the cards.

"I don't do redundancies. I just try a bit harder to keep all the good people we've got," said Duke.

"That's the hallmark of this business, compared to some others."

Briscoe Group edged up 1.1% to $4.50 in mid-morning trading

[winner (n)]

Things getting tough at Briscoes

Competition, more crime costing them a fortune and Rod not looking to pay for  doing things that signal to consumers 'we are doing the right thing' when it comes to sustainability

Could almost say it's a profit downgrade

https://www.nzherald.co.nz/business/briscoe-boss-rod-duke-prepares-to-lift-game-to-compete-with-costco-and-ikea/R3FASJAXDBH77EQ6KJQTIXHVTI/
Possibly paywalled

[Waltzing]

the boomaroo budget will handle all this... all good...buy your hearts out Kiwis...

[winner (n)]

Close at 444 today

Been a bit of enthusiasm for Briscoes lately ....up 10% from recent lows

[Waltzing]

lets hope BRIS does not do a WHS... im sure others are watching and learning...

[Waltzing]

Reporting dates coming up fast now ... end of july ..

[Waltzing]

Waiting....

04/08/2022   MKTUPDTE: BGP: 2nd Quarter Sales to 31 July 2022

[Left Field]

Briscoes update.....trading and profit projections flat. Tough times.

https://www.nzx.com/announcements/415994

"The directors of Briscoe Group Limited (NZX/ASX code: BGP) announce unaudited sales for the 26-week half-year to 30 July 2023 of $369.2 million, an increase of 0.35% on the $367.9 million reported for the same period ended 31 July 2022. The Group's homeware segment increased sales by 0.28% during this period and the sporting goods segment by 0.46%...........

"We expect New Zealand retail to remain highly sensitive to ongoing uncertainty in relation to economic conditions, customer sentiment, cost pressures, higher interest rates and political uncertainty given the upcoming election. As previously reported, we expect it to be difficult for the Group to replicate last year's full-year record net profit after tax (NPAT) result of $88.4 million. In relation to the half-year ended 30 July 2023 we are confident of producing a half-year net profit after tax (NPAT) in excess of $42 million, compared to the $45.6 million reported for the first half of last year."