Retailer Briscoe Group's sales to the end of 2024 are down slightly on the year earlier, reflecting tough trading conditions, with full year net profit expected to miss forecast.
Sales in the peak nine-week trading period ended December rose less than half a percent (0.42 percent), with Briscoe homeware sales up slightly (0.82 percent) and Rebel Sport goods down slightly (-0.20 percent).
Group managing director Rod Duke said trading conditions reflected a struggling economy and sluggish spending across retail, with consumer confidence yet to recover.
"We are yet to see any marked improvement in consumer confidence hoped for on the back of decreases in the OCR (RBNZ's official cash rate)," he said.
"While there were some positive signs across Black Friday promotions, we believe the event was diluted by the continued economic downturn as well as the amount of promotional activity that started considerably earlier than previous years.
"While Christmas trading, particularly our Boxing Day promotions, improved compared to Black Friday, December trading was still under anticipated levels."
Duke said the economic conditions had put pressure on margins and profit.
"Given the subdued trading performance for the first two months of this crucial final quarter and our expectation that this will continue through January, we now believe the group's full year net profit after tax (NPAT) will not meet the previous range given by the Group but will be greater than $66 million," he said, noting Briscoe's financial year ends on 26 January.
"This NPAT excludes the previously announced one-off, non-cash tax adjustment of $7.4 million booked as a result of changes to tax depreciation on commercial buildings enacted by the government earlier this year."
Despite the outlook, Duke said Briscoe was in a strong position heading into the next financial year.
"We continue to focus on controlling costs and ensuring the closing inventory position optimises both cost and quality.
"A benefit of trading as hard as we are throughout this 4th quarter, will be a January year-end inventory position which will close under last year and ensure the Group is extremely well placed for our new financial year."