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NZ retail sales data yesterday was very strong
Actual Forecast Previous
3.3% 2.4% 2.8%
WELLINGTON, Aug. 24 (Xinhua) -- New Zealand's total retail sales volume rose 3.3 percent in the June 2021 quarter, following a 2.8-percent rise in the March 2021 quarter, the country's statistics department Stats NZ said on Tuesday.
"Most retail industries saw increases in spending, with rises across all regions," Stats NZ said.
http://www.xinhuanet.com/english/asi...1310144998.htm
mthly bollingers have it over $7 , will soon be worth more than HLG
Half Year Review
Briscoe Group Limited (NZX/ASX code: BGP)
Highlights for the 26-week period – 1 February 2021 to 1 August 2021:
• Total sales $358.4 million, +22.58%
• Online sales as mix of total Group sales, 16.16%
• Gross profit $166.66 million, +35.20%
• Gross profit % 46.50% vs 42.16% last year
• Net profit after tax (NPAT) $47.46 million, +69.63%
• Benefits from strategic initiatives being realised
• Interim Dividend 11.50 cps increased from 9.00 cps last year
https://www.nzx.com/announcements/379098
BGR best retailer
duke da man , we said bgp will be higher share price than hlg and it nearly is
What's amazing is that Q2 sales were a lot stronger than Q1 SALES
Rod said comarison to 2 years ago is more meaningful than last year
Q1 Feb thru March were 15% higher than 2 years ago
BUT Q2 SALES WERE A STAGGERING 22% HIGHER THAN 2 YEARS AGO
Staggering - outperforming Warehouse by miles
HLG will get hammered in AUS for sure... and sometime into xmas it will be a BUY..
Surely balanced portfolios will have all of them.
Retail the place to be invested.
Got to be an over 8 dollar stock.
For a good article on Briscoes online developing business, go to:
www.estaronline.com - news - eStar launches Digital Picking
Interesting chart
Online sales base now 50% higher than re covid - online going from 11% of total sales to 16%
BGR is certainly dishing up a fairly stellar set of results & performance
That Rod man is da man :)
Did they?
Attachment 12964
This is good stuff as well “increased the wage rates for our in-store hourly-paid team by 6.4% from May 2021”
Probably because minimum wage rate increased by 5.8% on April 1st and they just maintaining some relativity with that
That’s a super pay rise!! Year on year raises like that and we will have a flood of inflation.
Or did BGP not give pay rises last year due to covid and this is catch up?
happy staff = happy customers
Oh NO its still going up....
its worth more than HLG :scared:
Bull thats just crap. They are at different spectrums of the Retail world. Hardly a real comparison.
no BGR IS WAY BETTER THAN HLG
anyway lets celebrate the new highs
https://www.youtube.com/watch?v=4ulcJCAXC4U
its gone skyward in the last month ...new zealand must have gone shopping mad ...
Jeez BGP share price a lot higher than HLG share price
Wasn’t that long ago HLG was nearing $8.00 (ok &7.80 odd) and at the same time BGP was only $5.80
One down $0.70 while other up $1.50
Some turn around - HLG big loser ….probably reflects financial performance (to be confirmed soon)
W(n) to be fair one is being slammed in AUS compared to the local market coming back in a few weeks time in New Zealand unlike NSW. Auckland could probably go level 2.5 next week as far as business is concerned.
Can somebody please explain why comparisons between the BGP and HLG share prices are being made? A meaningful comparison between the two companies is their market capitalization but share price comparisons seems completely meaningless. What am I missing?
Retail is Retail and that why the comparison as the investor is sector based not Company based. So far HLG has always been a volatile stock. The real interest is if MR B get his 7 dollars for WHS in the longer run.
Market close: Rod Duke newly minted billionaire as Briscoe Group shares reach new high
https://www.nzherald.co.nz/business/...ectid=12472292
Well done Rod you done good. The next challenge is what to do with it. "What does it profit a man to gain the whole world..."
testing please ignore
He some guy that Rod
Businessdesk story
When Briscoe was listed in December 2001, it had an IPO value of just $210 million. This was slightly ahead of the market values of Michael Hill and Hallenstein Glasson at the time, but 90% below Stephen Tindall’s The Warehouse, which was worth $2.01 billion in late 2001.
Briscoe is now the most valuable NZX retailer, well ahead of The Warehouse, and of Kathmandu which listed in November 2009. Meanwhile, Hallenstein Glasson and Michael Hill are now a long way behind.
https://businessdesk.co.nz/article/o...-briscoes-sale
Prob oaywalled
Like the bit in that article above
Chairman been there for years andvthere’s no lawyers or accountants on the Board
Lawyers and accountants have no idea about retailing
It is funny, I went through a phase of voting against all lawyers and accountants on any board on which I was eligible to vote as a matter of principle. That isn't because I held a grudge against lawyers and accountants. It is because I thought there should have been more diversity of occupations across any board, and some of these company boards had only lawyers and accountants!
SNOOPY
Briscoes forward PE if they make forecast is 18.3 Hmmm
not a high P/E thought in this market ? Not low and a lot higher than HLG ...
HLG hit hard for being in AUS.
Briscoes might be seen as the safer business and why a higher P/E.
Its an interesting one. 18 times forward earnings is right at the very top end for Briscoes historically and for the retail sector.
Market is saying there is no risk of us yoyoing in and out of lockdown. How realistic is the market's assessment of that risk as far as Briscoes are concerned ? https://www.nzherald.co.nz/nz/covid-...LAGEBAYTIEPKE/
On the other hand risk appears to be well and truly baked into all the other retailers.
I have found Mr market can sometimes be an incoherent, drunk monkey at times
At this level I am out. Great company (best of breed) however I can't justify the PE it's trading on vs sector peers.
Briscoe more highly rated than HLG at the moment because Briscoes not seen as a cyclical stock.
Cyclicals have low PE ratios at the top of the cycle and high PEs at the bottom ....
HLG relative low (perceived) PE at moment as its at a cyclical high
Market not having an incoherent drunk monkey moment - all rationale
WHS cap is now 1.3 billion. So it has reduced by 700 million which appears on the surface of it to be a rather bad thing. Is there other factors that mean it is not as clear cut as this? Maybe a return of capital to shareholders or ??? Rather a newbie question I know but all insights are appreciated.
How much of the reduction is due to Foodstuff's exit & rapid sell-down from the WHS Register ?
Things were ticking along quite nicely until that happened
How much possibly due to the other large Competitors from across the ditch & US potentially
approaching within firing range of the local retail turf ? ;)
When did the supermarkets pay stupid money for 10% blocking stakes? Could be that.
No return of capital to shareholders - even raised over 100m to go into financial services
When Briscoe listed WHS share price over $7
Decline has come about from years and years of disappointing performance / failed acquisitions etc etc etc .... a dog of a company and the share price reflected that --- thus the decline in market cap.
The Foodstuffs / Progressive share purchases were to block WHS entry into groceries and potential takeovers.
Just as well all that's changed and this time it is truly different
How much did BGR tip into KMD? Bit of a fail. Double fail not participating in KMD equity raise at $0.50 covid low.
Guess WHS fails way worse.
Only the initial ingoing Investment I believe plus one further investment, and they didn't take up the KMD CAP Raise entitlement last year
At a guess in bottom of the Covid dip last April, I estimated $100m revaluation write down guestimate on previously revalued
holding, which has reversed since and looks like the opposite (a surplus) now on fair valuing the holding from BGP's view ..
Note 4.1 - BGP Jan 2020 FY Financial Statements:
Quote:
4.1 Investment in Equity Securities
During 2015 and 2018 Briscoe Group Limited acquired a total of 42,673,302 shares in Kathmandu Holdings Limited
(Kathmandu) for a cost of $74,250,932.
In October 2019, as part of the capital raising programmes initiated by Kathmandu in
relation to their acquisition of the Rip Curl business, Briscoe Group Limited acquired a further 5,334,163 shares for a cost of
$13,602,116.
This increased holding represented a 16.27% ownership in Kathmandu Holdings Limited as at 26 January 2020.
These shares are equity investments, quoted in the active market, which the Group has elected to designate as a financial asset
at fair value through other comprehensive income (FVOCI). An adjustment was made at period end to reflect the fair value of
these shares as at 26 January 2020 (Note 1)
1. Fair value determined to be $3.21 per share as per NZX closing price of Kathmandu Holdings Limited as at 24 January 2020 (2019: $2.39) (Level 1 in the fair value hierarchy)..
Briscoes best retailer because of;
1) watch margins
2) watch market share
No reinventing the wheel. No big acquisitions. No expanding in Aussie. Very simple. Rewarded with consistent eps growth and therefore highest p/e of all the retailers.
Whoever Stockfox are they have. SELL, TAKE PROFITS on BGP
Beagle might be their advisor …priced for perfection he said of BGP
wow briscoes goes ex div and rallies , that what happens folks when your the number 1 retail stock to own on the nzx
well on that basis where do the stats put MHJ.. lowest P/E of all. Yes its only some brightly shining stones but. Bris will go on and build from here. Only thing holding it back is freight from China. Lock downs to go on for a while another month at this rate. Its starting to leaking out a bit.
Nice dividend being paid soon. And another one in six months. And six months after that.
Been a pretty good payer for the 20 years I have owned her. Will it go higher? Will it drop? I gave up trying to time the market years ago...my ability to predict the future was as rubbish as the best of em. The only thing I am certain of is Rod will keep doing what Rod does very well and all will be well. If he eventually retires I will rethink my position.
I'm probably logged into the wrong site. I should be on Shareholder. But it would be very dull...sweet all would happen on it.
Briscoes boss: Level 3 busier this year than last
https://www.stuff.co.nz/business/126...year-than-last
They seem to have been organised with their stock levels and anticipated this, but going better than they thought. I bought something online from Briscoes during lockdown - I dealt with a couple of people at my local store on the phone and they were just excellent. When I went to pick up the item from the store the person was also really good to deal with. In the past I thought their in-store customer service was a bit pedestrian (at both Briscoes and more especially at Rebel) but they seem to have put some effort into training or hiring the right staff at Briscoes at least, and it really showed during my last retail experience.
I often buy online through Briscoes and pay the extra $5 (no matter the size of the order) for delivery. Can’t beat that as it would be a 2 hour drive plus my time and the hassle :)
Every day is sale day and don't forget Rebels 15%off. Geez maybe the Govt and Commerce Commission should do a check on the BGR Groups pricing.
good interim report out showing just how focused they are on on line logistics and plenty of stock held for xmas already.
Dividend landed to the Moose’s bank account. Always a happy day
bit of an uptick in recent days
possibly a bit of 'Oh Corona - have to live with it' - still need to get on with retail regardless ;)
“The Group’s online performance has again been instrumental in minimising the potential
impact of these latest lockdowns. Online sales produced growth of 98% for the 3rd quarter and
represented 38% of all sales. We managed to maintain an incredibly high standard of service
despite the huge increase in online demand."
38% of all sales...Incredible...............Interesting noting Estar driving BGP's online platform.
No doubt loving the higher dollar too....
BusinessDesk says
Briscoe Group managing director Rod Duke said the rebound once his Auckland stores reopen may be even greater than last year's unprecedented post-lockdown boom.
"We think it may actually be even greater, given that we're now very, very close to Christmas and Black Friday," Duke told BusinessDesk.
Black Friday, scheduled this year for Nov 26, sales are typically the largest day of the year, he said.
Briscoe will run its Black Friday promotion over three days, starting on the Friday, and expects it to be the biggest three days' worth of sales for the year.
Duke said his company is carrying about 20% more stock than last year to combat the logistics problems caused by covid "so our stock position is very, very good".
They might even have a sale to celebrate......:cool:
He's a smart operator that Rod Duke guy..
These guys should benefit huge from Retail opening from tomorrow in Akl along with upcoming Xmas and summer period.
yep duke saying
It won't be like any other Wednesday we've ever experienced' - Briscoes boss says as Auckland retailers reopen
https://www.stuff.co.nz/business/126...tailers-reopen
If I'd been in lockdown forever and finally got to go to the shops, then the first place I'd go wouldn't be Briscoes. :scared:
Each to their own........
Looks like breakout to $7 is on the cards...
Both Warehouse & Briscoes hungry for a big acquisition - good time to be a retail operator with a possibility of two big fish hungry to acquire you.
Fascinating to me at least to consider what sort of business both of these firms might be looking into acquiring, and whether they are biding their time pending the outcome of the commerce commission review of the Supermarket Duopoly. If ComCom decides the big two need to divest and/or allow others to access their supply chain, then that would be a big opening for many large players.
Woolworths (who countdown are a part of) has 30% gross margins. The reason Aldi hasn’t entered NZ is due to the exact reasons the ComCom are doing their review of Countdwon and Foodstuffs: Anti-competitive behavior by a duopoly. Aldi cant open here because any of NZs food suppliers that currently supply Countdown and/or Foodstuffs have been repeatedly threatened with bad outcomes if they dare to trade with a new entrant.
Not likely. Aldi know they can't do it with the low margins. The inquiry has mis calculated the margins. Think of here in the South Island with the distances, roads and volume. How does another player make it work? And then expect it will make it cheaper for consumers and pay suppliers more. How will that work? Still this government doesn't want to listen and will push on regardless.
Still, Costco is coming and that will hurt a few different companies.
boxing day sales should be massive , have the inside word there be a 50 - 60% of sale
NO doubt everyone is eagerly checking out the box day numbers ..the fearless KIWI shopper..
https://www.nzherald.co.nz/nz/boxing...H2657V3INHSDQ/
Using words like 'blitz' and 'whopping' the commentators and journos have made out this is fantastic news ....but there are words like 'decline' and 'down' and 'drop down' etc
But no worrries ..... let's believe it's all hunky dory and the retail juggernaught continues to speed down the freeway
yes and now peek days not one day.. but the comments at S Park in TV 1 last night was the shoppers says we are not going to stay locked up.
they are going to go out into the great southern summer.
its a positive attitude to life even in difficult times.
Briscoes share price up quite a lot since WHS saying sales have been pretty poor
Punters maybe assuming that Briscoes have taken a lot of business away from the Red Sheds and T7
Rod said when announcing half year full year profit going to be above prior year $73m and up to $85. He repeated this in November after Q3 sales release.
So assuming still on track H222 profit will be between $26m and $37m
That will be 43% to 43% less than H221 ..... the same time frame as WHS H122 and their profit going to be 60% down in same period
Rod done a good job signalling how tough those six months are going to be without spooking the market .... I think so
If Briscoes come in a way below below that $73m Rod be slaughtered
I'm not sure thats the full picture. Briscoes runs a 31 January year end - so their 2022 financial year will be coming to a close very soon. Briscoes provide quarterly updates, so the half year is known (1HFY22 up), and Q3FY22 not surprising down on FY21, and thus 2hFY22 not yet known or completed (but we can safely assume it will be down). Regardless of half year performance, briscoes did provide full year guidance that FY22 would be up on FY21's full year (record) NPAT of 73.2m, and be as high as $85m. As far as I can tell, forsyth barr are the only broker still actively covering BGP (both jarden & macquarie have in the past). Forbar were initially forecast FY22 NPAT of $96.6m immediately prior to lockdowns and haven't yet updated (awaiting the full year results) but the analyst did comment that while it would be highly unlikely briscoes would meet forbars forecast they expected it would still exceed the upper end of their guidance. Duke has been pretty bullish (when has he not) on trading so lets just assume $85m NPAT - that's 16% year on year growth in npat - pretty impressive, and aside from MHJ probably the only nz retailer to do so (the warehouse and hallenstein glassons certainly will have declining profits year on year).
Specific to MHJ - people forget what absolutely dire financial circumstances they were in. FY20 their normalised npat was only $9m, declining revenue with compressing margins, high working capital and terrible return on funds employed, had debt and net debt equivalents in the form of employee liabilities they had to square up (long story). The turn around they executed came at the right time, catching the wind, increasing margins, fixing up its balance sheet etc. So the returns have been geometric rather than just arithmetic like for most retailers. You gotta love these turn arounds - STU included - that come at the right time.