Briscoe Group managing director Rod Duke is already warning of a tough first-half result in 2025 as the group reveals how it performed during the final quarter of last year.

The group’s unaudited sales for the 2025 financial year reached $791.5 million, just 0.06% below the record $792.0m it reported for the year before.

Both homeware and sporting goods reported the same “near-flat” decline of 0.06% for the financial year.

“We believe the difficult retail environment will continue into the 2025 calendar year and expect the group’s first half to be especially challenging,” Duke said.

“However, the exciting strategic initiatives and incredibly talented team positions the group well to continue to optimise profitability as and when the economy recovers.”

The group‘s unaudited sales for the fourth quarter ended January 26 was $245.3m, an increase of 0.96% compared to the same time last year when it reported sales of $243.0m.

It reported increased homeware sales of 1.27% and sporting goods of 0.44% over the fourth quarter, which included Black Friday and Boxing Day sales.

Rod Duke said that while the group's unaudited result was a terrific achievement, the year ahead is going to be a challenge. Photo / RNZ, Cole Eastham-Farrelly

Duke said the result was a terrific achievement in a year that proved to be exceptionally difficult for retail.

“Whilst current sales growth is at modest levels it is important to recognise this year’s level of sales represents a 21.20% increase since the year immediately before Covid [year ended January 2020] or 3.92% compound average growth across the same period.”

He highlighted the group’s online performance as a key strength during 2024, representing 19.69% of total group sales for the year, nearly 1% higher than last year’s mix of 18.72%

Duke said Briscoe was excited about the potential to grow its online business further as it re-platforms its front end to the Adobe system during 2025.

The business’ gross margin remained under significant pressure over the past year, and Duke expected the final reported full-year group gross profit margin to be roughly 200 basis points below last year’s figure of 42.40%.

He said that despite the drop, it would still represent a gross profit margin of about 100 basis points in excess of the gross margin delivered in 2019, the year before Covid-19.

One area of focus for the group would be inventory and cost management returns, with Duke sharing the group has improved both stock turn and the quality of closing inventory, particularly in the sporting goods seasonal category.

When finalised, he expected it should be roughly $5m less than in 2024.

In January, the Group revealed it would be downgrading its forecasted full-year profit following a slower-than-expected seasonal period, with Duke sharing that it would “not meet the previous range by the group but would be greater than $66m”.

Briscoe had previously told the market in a November update that its net profit would fall in the range of $70m to $77m.

Duke reiterated the downgrade, and said that it would still be a solid result given the “economic backdrop through which New Zealand retail has had to navigate.”

Despite the result, he said the group was committed to investing in critical business initiatives and its significant strategic programme remained on track and budget.

The group is due to report its full-year result, including the announcement of a final dividend, on March 12.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.