BGR - Briscoes Valuation

[see weed]

Who does your tax return.?

did you get my pm?

[see weed]

Sussed why you shortchanged on divie yet
Will find out on Tuesday due to Easter, will let you know.

[simplesimplesimple]

Briscoes seems fairly priced now, to my inexperienced eye and calculator - nothing like a 30% margin of safety, though.

The Amazon risk does seem significant, as most of the Briscoes range is existing fare for Amazon. I use the Briscoes online system a bit, and they're pretty good, but the intense competition Duke always mentions in his shareholder reports would be at a different level with Amazon in the mix. I started thinking today that maybe the right way to look at it is from the Amazon end i.e. getting my head around whether the Amazon retail model really will prove sustainable - I know the recent profits suggest maybe, but that's in large part the AWS business propping up the retail. Maybe for Amazon to become profitable they'd have to be so dominant that they'd be broken up? Maybe investors will eventually think that paying top dollar for a business not making much money isn't a winning strategy (although to date that's not the way it's been seen!)

I think it's a Keynes quote that markets can remain irrational longer than an investor can remain solvent - maybe the parallel is that Amazon can keep destroying retail businesses for a long while yet even if the model doesn't prove to be successful, ultimately.

[JeremyALD]

Yeah I think BGR is a good stock but I can't see much more growth in the next five years - maybe 5% p.a. max unless they do something different.

[simplesimplesimple]

Yeah I think BGR is a good stock but I can't see much more growth in the next five years - maybe 5% p.a. max unless they do something different.

It's a good dividend stock, and I like what I know of Duke, but the possibility of being crushed by Amazon makes me nervous. Not sure what price I'd have to see to feel it was a justified risk of capital. Without Amazon I think I'd start buying slowly now for the income stream.

[dragonz]

Amazon will be of little threat unless they decide to start warehousing items here and then they face all the costs and regulations the local retailers do.

[minimoke]

BRG now under the spotlight like Smith City group for not paying workers for non-sales work like the rark 'em up motivation meetings and store close ups

[Jay]

I would have thought that outfits such as Briscoes etc would have the hours of work starting before the shop opens and after it closed such as 8:45 to 5:15 for a 9-5 opening time for example.
In any "retail" outlet you cannot just down tools so to speak and leave at 5pm. need to cash up each day and get it out in the morning as a minimum, doesn't happen instantly.

[Patient Panda]

This is my first post on this forum. I have been reading here religiously for at least 3 years and have tried to make an account several times but was always unable without access to an ISP email address. This is one reason I would suggest for the high viewership to poster number ratio.

Disc: 25% of my listed portfolio is comprised of BGP.

On to Briscoes.

i have noticed on this forum often times the true golden companies are unsung heroes.


I’m a huge fan of Briscoes and of Duke. Hes a value hound at heart, he didn’t chase KMD for a stupid price and they focus on doing the basics well instead of flashy inconsistent approaches I see all over the place.

Briscoes is without a doubt some of the best value you can find currently on the NZX.

Sitting currently on a P/ E ratio of 12.92

it has an average 5 year return on equity of 28%! (According to reuters data). This is enough to be making Buffet and Munger salivate. The large increases in EPS are not being diluted to laughable levels

The return on equity figure looks even more impressive considering they have low debt and are conservatively managed.

They pay a fantastic increasing dividend.

to the best of my knowledge over the past 10years its turned a profit 9 of those years. An enviable track record, even moreso in the retail industry and directly post GFC.


looking forward to discusing BGP with you all in more detail and depth.

[whome]

[QUOTE=Patient Panda;718582]This is my first post on this forum. I have been reading here religiously for at least 3 years and have tried to make an account several times but was always unable without access to an ISP email address. This is one reason I would suggest for the high viewership to poster number ratio.

Message to moderator. I Agree with PP. I know a number of share savvy people who would like to take part in this forum but simply gave up trying to get onto it. Frustrating.

[Baa_Baa]

This is my first post on this forum. I have been reading here religiously for at least 3 years and have tried to make an account several times but was always unable without access to an ISP email address. This is one reason I would suggest for the high viewership to poster number ratio.


Message to moderator. I Agree with PP. I know a number of share savvy people who would like to take part in this forum but simply gave up trying to get onto it. Frustrating.

My understanding is that around the time Vodafone culled all it's email addresses, Sharetrader removed the ISP-only email address registration and opened up to @gmail @hotmail etc. For example, I changed my registered email from an @vodabaloney to an @gmail address.

I'll cross post this to the Sharetrader Back Office thread for STMOD to comment, the BGR folks might not appreciate an off topic discussion here.

Link here: https://www.sharetrader.co.nz/showthread.php?11311-Registering-for-Sharetrader-what-email-addresses-are-valid&p=718615#post718615

[ratkin]

Message to moderator. I Agree with PP. I know a number of share savvy people who would like to take part in this forum but simply gave up trying to get onto it. Frustrating.

On the positive side this may have also helped the forum to maintain it's family feel. Many of us have been posting for around Fifteen years now and many of the names remain the same. Not many forums you can say that for

[percy]

On the positive side this may have also helped the forum to maintain it's family feel. Many of us have been posting for around Fifteen years now and many of the names remain the same. Not many forums you can say that for

We have lost Belgarion,Karen1,KW,Lizard,Phaedrus,Mark100,Noodle s, Steve Fleming,Sparky the Clown,and Wolf,while Paper Tiger is missing in action..
Unfortunately new posters have not matched their sharemarket intellect,so good new blood is needed.

[RupertBear]

We have lost Belgarion,Karen1,KW,Lizard,Phaedrus,Mark100,Noodle s, Steve Fleming,Sparky the Clown,and Wolf,while Paper Tiger is missing in action..
Unfortunately new posters have not matched their sharemarket intellect,so good new blood is needed.

I miss Paper Tigers posts, I wonder where he is? :confused:

[percy]

I miss Paper Tigers posts, I wonder where he is? :confused:

Travelling...……….
Think his last post was from Borneo.

[kiora]

We have lost Belgarion,Karen1,KW,Lizard,Phaedrus,Mark100,Noodle s, Steve Fleming,Sparky the Clown,and Wolf,while Paper Tiger is missing in action..
Unfortunately new posters have not matched their sharemarket intellect,so good new blood is needed.

Add Hoop,Duncan McGregor vs Shrewd Crude when they were on the good oil.
PT morphed to SL(missed his posts too)welcome back SL

[winner69]

Don’t forget about the one and only the infamous MOOSIE

I think he committed ST suicide and got all his posts deleted

[winner69]

CRACKITY was pretty good contributor as well

I admired a poster called GREASY CHICKEN who only posted on the RBD thread ....think he was a true insider though

[kiora]

Don’t forget about the one and only the infamous MOOSIE

I think he committed ST suicide and got all his posts deleted

Hasn't he gone to the dark side.........Hot Copper?

[Leftfield]

Hasn't he gone to the dark side.........Hot Copper?

He's got his own sandpit to play in...... fat portfolio.... nice looking, but a bit lacking in content IMO.

[dragonz]

This is my first post on this forum. I have been reading here religiously for at least 3 years and have tried to make an account several times but was always unable without access to an ISP email address. This is one reason I would suggest for the high viewership to poster number ratio.

Disc: 25% of my listed portfolio is comprised of BGP.

On to Briscoes.

i have noticed on this forum often times the true golden companies are unsung heroes.


I’m a huge fan of Briscoes and of Duke. Hes a value hound at heart, he didn’t chase KMD for a stupid price and they focus on doing the basics well instead of flashy inconsistent approaches I see all over the place.

Briscoes is without a doubt some of the best value you can find currently on the NZX.

Sitting currently on a P/ E ratio of 12.92

it has an average 5 year return on equity of 28%! (According to reuters data). This is enough to be making Buffet and Munger salivate. The large increases in EPS are not being diluted to laughable levels

The return on equity figure looks even more impressive considering they have low debt and are conservatively managed.

They pay a fantastic increasing dividend.

to the best of my knowledge over the past 10years its turned a profit 9 of those years. An enviable track record, even moreso in the retail industry and directly post GFC.


looking forward to discusing BGP with you all in more detail and depth.

I dont think they have any dept and quite a few million in cash. The shares are quite tightly held with only 15% available to the public which may account for the lack of interest in the forums.

[jg8512]

hi Panda
I had a similar experience trying to join sharetrader - it took several attempts and literally months of waiting to join. For years I've become so used to being able to read posts, but not contribute, it's proving a very hard habit to break. Ie, Even now that I have write access I still read and don't contribute.

excellent first post, BTW. Thanks. I too am a large Briscoe's holder - not many (any?) NZX stocks that are better value than BGP, IMHO.

As dragonz notes, BGP also has a large cash balance ($78m at latest report according to my s/sheet) as well as that big holding in KMD (worth circa $95m according to my s/sheet). In valuing BGP, and calculating a PE for BGP, you really need to adjust for those investments, IMHO, as their value is not fully reflecting in current earnings. Doing so, and BGP is cheaper still, IMHO.

the big risk, seems to be BGP's reliance on key brands which other parties like Amazon could sell at lower prices solely by internet. Will the consumer of tomorrow prefer an internet-only offer from eg Amazon or an offer from a retailer with internet sales, backed by a physical store network? In my view, the short answer is: time will tell, and will emerge gradually. Clearly internet will continue to take sales from physical sales - but BGP is active online too with strong internet sales growth, and I'm not at all convinced that Amazon et al will simply kill everyone else. Yet, the share price for BGP seems to assume that will happen, and happen relatively quickly. that seems very pessimistic, in my view.

Happy to hold and accumulate more BGP.

[percy]

What the challenge retailers face from the internet traders is "show rooming."
This is when a customer sees a product they like, at a store such as Briscoes ,and then scan the bar code,and compares the price with online stores,and ordering online while they are still in the Briscoe store.!!!!.
I think the likes of Rebel sports the customers actually try the shoes on,before comparing prices.!

[dragonz]

What the challenge retailers face from the internet traders is "show rooming."
This is when a customer sees a product they like, at a store such as Briscoes ,and then scan the bar code,and compares the price with online stores,and ordering online while they are still in the Briscoe store.!!!!.
I think the likes of Rebel sports the customers actually try the shoes on,before comparing prices.!

Its amazing the difference in quality for what looks like identical items. Normally people get what they paid for

[percy]

Its amazing the difference in quality for what looks like identical items. Normally people get what they paid for

No difference when you scan the bar code.

[Patient Panda]

hi Panda
I had a similar experience trying to join sharetrader - it took several attempts and literally months of waiting to join. For years I've become so used to being able to read posts, but not contribute, it's proving a very hard habit to break. Ie, Even now that I have write access I still read and don't contribute.

excellent first post, BTW. Thanks. I too am a large Briscoe's holder - not many (any?) NZX stocks that are better value than BGP, IMHO.

As dragonz notes, BGP also has a large cash balance ($78m at latest report according to my s/sheet) as well as that big holding in KMD (worth circa $95m according to my s/sheet). In valuing BGP, and calculating a PE for BGP, you really need to adjust for those investments, IMHO, as their value is not fully reflecting in current earnings. Doing so, and BGP is cheaper still, IMHO.

the big risk, seems to be BGP's reliance on key brands which other parties like Amazon could sell at lower prices solely by internet. Will the consumer of tomorrow prefer an internet-only offer from eg Amazon or an offer from a retailer with internet sales, backed by a physical store network? In my view, the short answer is: time will tell, and will emerge gradually. Clearly internet will continue to take sales from physical sales - but BGP is active online too with strong internet sales growth, and I'm not at all convinced that Amazon et al will simply kill everyone else. Yet, the share price for BGP seems to assume that will happen, and happen relatively quickly. that seems very pessimistic, in my view.

Happy to hold and accumulate more BGP.


Thanks jg. Yes they’re always building their big war chest. Something I can never quite understand is how they achieve such phenomenal return on asset ratios of circa 19% when holding fairly large sums in cash accounts.

Of course Amazon is an ever present godzilla waiting in the wings. Until they have a distribution warehouse in NZ I don’t think they will affect BGP in a material way. Whilst Amazon moves fast, it seems like they’re focusing on their 2nd aussie fulfillment centre and will probably try to improve their range and selection across the ditch because right now its still comparatively limited.


The margins on the AMazon retail arm are so low its going to be a question of whether the rest of their business thats actually turning a profit like AWS subsidises and supports the retail arm long enough for it have a big effect in NZ, only time will tell.

[percy]

Right team.
Google Sunbeam carveasy electric knife;
Smiths City $79.99
BRISCOES $69.99
Trade Me $55.15
Appliance Shed.$42.00
Harvey Norman $39.00.
So Briscoes competition is close at hand.

[Patient Panda]

What the challenge retailers face from the internet traders is "show rooming."
This is when a customer sees a product they like, at a store such as Briscoes ,and then scan the bar code,and compares the price with online stores,and ordering online while they are still in the Briscoe store.!!!!.
I think the likes of Rebel sports the customers actually try the shoes on,before comparing prices.!


hi Percy! I’m very familiar with show rooming having done it many times myself.

For example recently I bought a new Canon DSLR camera. Tried it out in a camera shop to make sure it was the right fit etc.. hopped on pricespy.co.nz and found the exact same model $300 cheaper. Now the guy in the camera store was extremely helpful and I would have been more than happy to be a 50$ premium as a service fee, maybe even 100 but I couldn’t justify such a big price difference.


Whilst show rooming is a risk to BGP until their is a website like www.pricespy.co.nz for products briscoes sells the risk is present but vastly reduced. Shoppers must individually google the item and go through each individual website.


i think the number of people in the general population doing it by barcode is miniscule. The vast majority of people are just going to use the brand and model name.

[jg8512]

Right team.
Google Sunbeam carveasy electric knife;
Smiths City $79.99
BRISCOES $69.99
Trade Me $55.15
Appliance Shed.$42.00
Harvey Norman $39.00.
So Briscoes competition is close at hand.

Percy, that's Briscoe's normal price. nobody pays that price. you wait for the once in a lifetime sales, with discounts of 40-60%+ off, which happen every second weekend, to buy.

[Sideshow Bob]

Right team.
Google Sunbeam carveasy electric knife;
Smiths City $79.99
BRISCOES $69.99
Trade Me $55.15
Appliance Shed.$42.00
Harvey Norman $39.00.
So Briscoes competition is close at hand.

People don't realise how expensive Briscoes is outside of promotion - but often promotion is no better than elsewhere. But also selling smaller ticket items that many think aren't worth pricing around too far (and probably trust Briscoes pricing).

Bit like Katmandu, their standard pricing is expensive and more expensive than more highly regarded brands. But wait, it's 40% off!! Only to come down to a more standard price.

Poor old Smiths City.....but that's another thread!

[dragonz]

No difference when you scan the bar code.

How does that work?

[percy]

How does that work?

The book I am reading at present is Panic Room by Robert Goddard.
On the back is the bar code,which shows the isbn.9780593076378.
Now when I google that isbn I get the following;
The Warehouse $29.00
Paper Plus $37.00
Mighty Ape $34.99
Fishpond $23.89.
Now I do not have or use a cell phone,however I believe it is possible to use a phone to scan that bar code which will bring up the information I have quoted.
All products have bar codes.So to make sure you are ordering the right product scan the bar code.

[Sideshow Bob]

Something like this:

https://www.pcmag.com/feature/290959/the-best-shopping-apps-to-compare-prices

[macduffy]

Solid numbers from BGP. Expect higher gross margin and higher NPAT than last year.

http://news.iguana2.com/macquaries/NZSE/BGP/321672

[Patient Panda]

Solid numbers from BGP. Expect higher gross margin and higher NPAT than last year.

http://news.iguana2.com/macquaries/NZSE/BGP/321672

Fantastic news. Duke never fails to deliver. Thanks for the headsup Macduffy

[percy]

I do not know how he keeps coming up with the goods,but he does.
Interesting to see online sales now up to 9% of revenue.A sizeable amount.
Estar must still be doing an excellent job on their on line platform.

[Patient Panda]

If I didn’t see the nice big divi and all those rebel and Briscoes ads I could almost be fooled into thinking he pulls his sales out of his magic hat

Probably just a couple of years till online sales make up 20% of revenues
and a Classic Estar plug !

[percy]

If I didn’t see the nice big divi and all those rebel and Briscoes ads I could almost be fooled into thinking he pulls his sales out of his magic hat

Probably just a couple of years till online sales make up 20% of revenues
and a Classic Estar plug !
Not a lot of people know I am an Estar shareholder....lol.

[SCOTTY]

Not a lot of people know I am an Estar shareholder....lol.

Interesting Percy. eStar now powers the big Aussie David Jones which is several times bigger than Briscoes. Must have been talking to Rod Duke :) I’m also an eStar shareholder......lol.

[winner69]

BGR $68m ‘investment’ in Kathmandu now worth $133m

Rod says ‘comfortable holding’ holding but options remain ...hmm

If they sold them could fund a decent acquisition or as they don’t need more cash shareholders could get 60 cents a share back

[percy]

Was at Briscoes Salisbury St ChCh buying a skillet electric fry pan at 9.40 am this morning.Was $99.99 yesterday when we looked.Paid $40 today.
Shop was flat out.Even a que to get into their car park.

[Baa_Baa]

BGP only 10 cents or so off major support on the chart (lows of 2017 and highs of 2014). Today's 50%+ off sale was pumping, so plenty of stock flying out the door, hopefully still at decent margin and pumping up revenue after what may have been an otherwise lack lustre Dec retail period.

Current prices could offer decent buying for yield and some day in the future capital gains, though as mentioned elsewhere, it's difficult to tell whether the retail sector as a whole has a contagion and this reliable divi payer is well past it's 50/200 DMA death cross (Oct'18) and still deflating SP.

Wadda ya reckon people, buy into support at $3.10-12 or wait and see how low it goes?

p.s. for years this stock has done well in the first quarter calendar year.

[Blendy]

Wadda ya reckon people, buy into support at $3.10-12 or wait and see how low it goes?


I have to admit, I am curious....

[macduffy]

If BGP goes much lower I can see a certain majority holder building his holding.

[Beagle]

10274
There is nothing about the chart that provides any encouragement at this point, in my opinion.
I won't open up a new position with buying into a clear downtrend but each to their own. I must admit I have a lot of respect for how Rod Duke has run his operation over the years. Getting the timing right is the key here.

[Baa_Baa]

You need a longer timeframe chart, the support is from 2014

[peat]

The only vaguely possible bullish pattern I can see is a descending triangle in last month or so, which could indicate a rise back to 3.40 - 3.50 but nah I wouldn't buy on that possibility certainly not yet. Ideally it could have a quick spike down before turning sharply up. But by the time its confirmed (and one should wait for confirmation) there wont be much left to take on the completion as its not really that big a pattern.

[winner69]

No signs of weakening sales at Briscoes

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/330393/294658.pdf

[Beagle]

Good result for Q4 compared to how many other retailers appear to have done.
Forward PE on revised profit guidance 11.4 at $3.25. Looks about fair value to me.

[percy]

No signs of weakening sales at Briscoes

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/330393/294658.pdf

On line sales up an incredible 27%.

[macduffy]

Yes, going very well!

Perhaps it's worth bearing in mind that the original IPO was an Aussie private equity sell-off - of sorts!

;)

[Sideshow Bob]

On line sales up an incredible 27%.

Online is great....just wait for a sale and $5 postage. In my experience, they just send it from the closest store that has stock.

Great when you don't have a Briscoes in your town.

[winner69]

Hint / conjecture in this article Rod might leave the stock market altogether

Love the word miracle in the headline

http://www.sharechat.co.nz/article/e94912c5/investors-lukewarm-about-briscoes-christmas-miracle.html?utm_medium=email&utm_campaign=Investors%20lukewarm%20about%20Brisco es%20Christmas%20miracle&utm_content=Investors%20lukewarm%20about%20Briscoe s%20Christmas%20miracle+CID_7081e6de959e1a4da6887a 8adf0e3258&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticlee94912c5invest ors-lukewarm-about-briscoes-christmas-miraclehtml

[macduffy]

Yes, it's a routine question for some journalist or other to ask Rod that one! Like a broken watch, it'll probably be right some time.

:mellow:

[winner69]

On line sales up an incredible 27%.

Probably over 10% of total sales now

[Baa_Baa]

Probably over 10% of total sales now

Would be nice to see an online revenue / %growth breakdown across the Group, could be one doing better than the other. Seems they're late to the online party (not very experienced in this digital stuff) if The Duke is ecstatic about only 10% or so online sales. 27% growth off an insignificant base should be easy, but you'd want to see 100%+ recurring growth if your online strategy was really humming, considering the online marketing reach extends way way beyond physical stores. Anyway, shareholders who are used to being excited about recurring 5%+ growth in what others are now saying is a challenging sector, will be chuffed by hearing 27% growth (5x) from online!

[percy]

They have been a client of www.estaronline.com for a good few years.
So in fact they were early to the online party.
And that 27% growth is on a significant base.

[Baa_Baa]

Our natural confirmation bias tends to blind us to anything that might have any risk associated with it. Better I think to acknowledge and discuss it than sweep it under the carpet with some 'she'll be right never mind' comments from vested shareholders, especially recidivist promoters who never even acknowledge risk but purport to have some understanding of it.

[winner69]

Re online sales

Jan17 they said online sales ~6% group sales and +40% growth. Implies online sales ~$35m
Jan 18 they said online sales up about 30%
Jan 19 they said online sales up 27%

Means online sales grown to ~$60m or 9.5% of group sales

Pretty good ....but growth rate slowing

[Patient Panda]

Re online sales

Jan17 they said online sales ~6% group sales and +40% growth. Implies online sales ~$35m
Jan 18 they said online sales up about 30%
Jan 19 they said online sales up 27%

Means online sales grown to ~$60m or 9.5% of group sales

Pretty good ....but growth rate slowing

nice conclusion via deduction but mr Duke gives it all away in the sharechat link post above

”Online revenues in are now 9.5-10.5 percent of total revenues, Duke said.”



On an unrelated note,
Briscoes still proving (obviously with a few exceptions theres a strong correlation between a companies quality and the amount it gets discussed on this board.

BGP more often than not on very reasonable valuations and continues to deliver great results.


and with their superb R.O.E I will be expecting another increase in the dividend come march 31 :)

[winner69]

Solid BGR full year .....sales +4.43% NPAT +3.37%

Nothing spectacular but Rod just keeps keeping on. At least he’s not tagged as a growth company so doesn’t have to meet elevated expectations

[Sideshow Bob]

Just let me know when they have a sale - need a new slow-cooker.

[see weed]

Just let me know when they have a sale - need a new slow-cooker.
Lots of stuff half price last weekend.

[winner69]

Rod his usual gloomy self

But did mention margins are under pressure and higher wages becoming a problem

And that’s before the accounting of leases change


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/334126/299290.pdf

[Beagle]

Rod his usual gloomy self

But did mention margins are under pressure and higher wages becoming a problem

And that’s before the accounting of leases change


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/334126/299290.pdf

Probably still incredulous he's not allowed unlimited helicopter movements at whatever times he likes.

[percy]

Rod his usual gloomy self

But did mention margins are under pressure and higher wages becoming a problem

And that’s before the accounting of leases change


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/334126/299290.pdf

Higher wages have hit retailers straight away.
Margins are already under pressure, and any fall in the NZ $ will hit all retailers.
I have my doubts about Living and Giving stores.
No mention of online sales,which I find surprising.
I received excellent service from their Salisbury Street store last week when I made a purchase.
Most probably be another long hard winter for NZ retailers.
I no longer hold a retail stock,although Craigs call Turners a retailer.

[Sideshow Bob]

Solid.


2nd Quarter Sales to 28 July 2019
5/8/2019, 9:25 amMKTUPDTE Sales to 28 July 2019
Briscoe Group Limited (NZX/ASX code: BGP)
Highlights for the 2nd quarter (13 weeks) to 28 July 2019:
• Total Group sales $152.3 million, +4.05%
• Homeware sales growth, +2.32%
• Sporting goods sales growth, +7.61%
• Group same-store sales growth, +3.40%
• Total gross profit (dollars) growth, +3.69%
Highlights for the half-year (26 weeks) to 28 July 2019:
• Total Group sales $303.0 million, +3.34%
• Homeware sales growth, +2.57%
• Sporting goods sales growth, +4.68%
• Group same-store sales growth, +2.74%
• Total gross profit (dollars) growth, +2.40%
The directors of Briscoe Group Limited announce unaudited sales for the thirteen-week second quarter to 28 July 2019 increased 4.05% to $152.3 million from the $146.4 million achieved for last year’s second quarter. The Group’s homeware segment increased sales by 2.32% during this period and the sporting goods segment by 7.61%.
On a same-store basis, the Group’s sales for the second quarter ended 28 July 2019 were 3.40% ahead of the same period last year.
On a same-store basis, homeware sales increased by 2.32%, while sporting goods sales increased by 5.62% over the second quarter of last year.
Group sales for the first half, 26-week period to 28 July 2019, were $303.0 million, an increase of 3.34% on the $293.2 million achieved for the first six months of last year. The Group’s homeware segment increased sales by 2.57% during this period and the sporting goods segment by 4.68%.
On a same-store basis, the Group’s sales for the half-year ended 28 July 2019 were 2.74% ahead of the same period last year. The same-store calculation adjusts for two Rebel Sport stores opened by the Group at Kerikeri (February 2018) and at Papanui, Christchurch (November 2018), and also for the closure of the Living & Giving Store at Riccarton (March 2018).
On a same-store basis, homeware sales increased by 2.72% for the 26 week period while sporting goods sales were 2.76% ahead of last year.
Group Managing Director, Rod Duke said, “The very late start to winter has impacted our trading patterns for this second quarter, especially for our seasonal homeware product. The successful winter clearance programme which closed out the second quarter, boosted sales but did come at the cost of gross profit percentage.
The second quarter has seen a strong performance across our sporting goods segment with sales growing at over 7% ahead of last year.
“We are relatively pleased with the sales performance for the second quarter and despite continued pressure on margins and increased wage cost pressures, the second quarter has produced a bottom-line profit marginally ahead of that for the same period last year.
“Sales through our online channel continue to grow strongly and are now approaching 11% of total Group sales, having grown at over 20% compared to last year’s half-year.
“In addition to the competitive trading environment, this year’s reported bottom line, as noted in last year’s financial statements, will be impacted by the introduction of the new accounting standard in relation to the treatment of leases (NZ IFRS 16). The impact to the Group’s income statement will be to lower the reported net profit after tax (NPAT) in comparison to the NPAT which would have been reported under the previous accounting treatment. The effect of this change on NPAT will occur gradually throughout the year and will impact the first half tax-paid profit by around $1.2 million in addition to the change incurred from normal trading. It is important to note that the impact of NZ IFRS 16 has no cash effect to the Group and is for financial reporting purposes only. The new standard will significantly impact all businesses with sizable portfolios of leased properties.
“New Zealand retailing remains highly competitive, sensitive to continued cost and margin pressures as well as subdued consumer and business confidence.
“In relation to the Group’s half-year profit, we anticipate a trading performance similar to the first half of last year. However, an additional negative adjustment will be made to the final reported net profit after tax (NPAT) of around $1.2 million as a result of the new leases accounting standard. The directors expect to release the half-year profit announcement on 17 September 2019.

[winner69]

Rod sounds more dismal than he normally does

http://www.sharechat.co.nz/article/b46e86d4/briscoe-group-says-outlook-uncertain.html?utm_medium=email&utm_campaign=Briscoe%20Group%20says%20outlook%20un certain&utm_content=Briscoe%20Group%20says%20outlook%20unc ertain+CID_e7c8cee321776d19de90245fc1a8af64&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticleb46e86d4brisco e-group-says-outlook-uncertainhtml

[peat]

yeh it all sounds very hard graft these sales increases but no profit increases. divi up tho.

[macduffy]

Solid sales growth in 3rd quarter.

https://news.iguana2.com/macquaries/NZSE/BGP/343736

[winner69]

Solid sales growth in 3rd quarter.

https://news.iguana2.com/macquaries/NZSE/BGP/343736

This link for those not part of the big end of town
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/343736/311106.pdf

Great growth ...in a ‘very competitive market’ ...that’s way worse than the normal ‘challenging’

[Sideshow Bob]

Solid sales growth in 3rd quarter.

https://news.iguana2.com/macquaries/NZSE/BGP/343736

Pretty solid indeed. Will be interesting to see how that translates to earnings. Wonder how the lower dollar is treating them....

[percy]

20% online growth is excellent.

[percy]

Nice being welcomed into Briscoes Salisbury Street this morning by Tammy Wells.

[Mr Slothbear]

High kiwi $ lately going to be good for Briscoes.

I read Rod talking about how they have moved a few store locations to take advantage of a few very cheap leases offered and Theres now the much larger rebel sport in riccarton and Briscoes moving to bushinn so will be very interesting to see how it effects the bottum line numbers.

[macduffy]

Steady result from Briscoes. This year will be another matter!

https://www.nzx.com/announcements/350004

[Mr Slothbear]

As Briscoes is one of my largest holdings really pleased to see this. What quality management really looks like.

https://www.stuff.co.nz/national/health/coronavirus/120312406/coronavirus-briscoe-group-boss-rod-duke-will-forgo-his-salary-until-july-as-the-coronavirus-impacts-retail

[nztx]

Could be a rather hefty hit coming in the BGR Balance sheet for write down of it's KMD stake if the KMD SP stays down around current levels - depending on how they deal with Investment write-downs & whether they go through P&L or directly to reduce reserves now ?

[winner69]

Rod's my man ... no stores open, no income but NO REDUNDANCIES

https://www.stuff.co.nz/business/prosper/121673233/coronavirus-no-sales-at-level-4-but-no-redundancies-says-upbeat-briscoes-boss

[Ogg]

I see that Kathmandu is now bigger than Briscoes. When's the Kathmandu take over of Briscoes happening, lol?

[Mr Slothbear]

I see that Kathmandu is now bigger than Briscoes. When's the Kathmandu take over of Briscoes happening, lol?


they’re only bigger because xavier has been under the blight of the institutional imperative and not about shareholder returns like Rod.

if you compare the balance sheets and environment going forward, Briscoes in a much better spot to be on the hunt.

I’ll add that I tuned in this morning to the AGM and was pleased by how everyone presented. Looks like a very big push into digital which is good.
very good inventory management, will be same level as last year even with lockdown etc..

[DazRaz]

And he explained why Briscoe didn't take up the Katmandu share offer.

[Sideshow Bob]

And he explained why Briscoe didn't take up the Katmandu share offer.

Why didn't he take up the offer? thanks.

[Ogg]

Why didn't he take up the offer? thanks.

Because at Briscoes, "You'll never buy better"

[peat]

I seem to recall he said something about preferring to have the money available for Briscoes in case things got nasty.

[nztx]

Mr Market seems to be saying 'when will the signs of the Better flow through into the SP' ?

Will a nice fat juicy Div in near future help fix the market perception ?


When just about everything else is jumping & rising in the early post C-19 approaching spring, the NZX Fairy's Magic Wand
seems to repeatedly either miss or deviate away from BGR fairly quickly .. ;)

[DazRaz]

Briscoe Group is certainly one share that is under rated. They have solid financials, excellent management and less likely to be as affected by a recession compared to other retailers (HGL, KMD). I see that homewares will hold stronger trade during a recession and with all the people renewing health and fitness goals during the lockdown, Rebel Sport will get on track faster.

They probably could pump the SP with an announcement of something vaguely positive (like KMD) and raise the share price. I'm happy to wait for the next financial report.

As an aside, the ticker code is BGP not BGR.

[macduffy]

I don't think Rod is particularly interested in pumping the SP. BGP have a history of under-promising and over-delivering.

:)

[percy]

I don't think Rod is particularly interested in pumping the SP. BGP have a history of under-promising and over-delivering.

:)


Rod never really liked online business.Was always a bricks and mortar retailer.
Now that Corona Virus, has moved online sales growth as a % of total revenue years ahead.In 2 months it has moved forward 2 to 5 years.
It is therefore going to really interesting seeing what direction Rod takes Briscoes, now he has embraced online l.

[jmsnz]

Rod never really liked online business.Was always a bricks and mortar retailer.
Now that Corona Virus, has moved online sales growth as a % of total revenue years ahead.In 2 months it has moved forward 2 to 5 years.
It is therefore going to really interesting seeing what direction Rod takes Briscoes, now he has embraced online l.

I am not sure that he doesn't like online sales but rather than he doesn't see them replacing their traditional channels. He was on radio the other money talking about how they are going and made the comment that online sales had been strong and he expected that to continue into the future

[Mr Slothbear]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12341769


I don't have access behind the paywall but looks like an interesting article

[King1212]

It said.... although sales down but Briscoe is well position. Mr Duke cancelled dividend n as well as his salary...all ex also reduced thier salary

With no debts n good cash as they did not buy in KMD...

Briscoe has high exposure to that. If people are going to spend a lot more time at home, they might want to upgrade their appliances and homewares.

[DazRaz]

Not to mention an increased focus from many people on health and fitness so Rebel Sport should benefit.

[winner69]

Wonder if this is Rod’s way of telling Nick from WHS he’s useless.

Go Rod ...good guy

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/356693/326839.pdf

[percy]

Wonder if this is Rod’s way of telling Nick from WHS he’s useless.

Go Rod ...good guy

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/356693/326839.pdf

Will be interesting seeing what % of sales their online sales have reached,and their % increase.

[Snow Leopard]

Last quarter online sales at 23% even with the rush back into the shops: [ announcement (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/357194/327439.pdf) ]

Baulked at topping up at $3.40 yesterday, not timing my buys to perfection, as usual ;)

[macduffy]

Last quarter online sales at 23% even with the rush back into the shops: [ announcement (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/357194/327439.pdf) ]

Baulked at topping up at $3.40 yesterday, not timing my buys to perfection, as usual ;)

And total Group sales for the quarter +28%!

:)

[winner69]

Bloody amazing sales report

Essentially what lost through lock down has been caught up

With efficiencies etc etc no wonder profit going to be better than expected

Go Rod

[percy]

Bloody amazing sales report

Essentially what lost through lock down has been caught up

With efficiencies etc etc no wonder profit going to be better than expected

Go Rod

That's incredible.

[+++++]

There has been an unusual level of activity post lockdown in some retail business. My cmp has also been up 25-30%. Pent up demand? Retail therapy? Getting out and about? Reclaiming a sense of normality perhaps? Replacement of broken appliances during lockdown. Upgrading etc. Will be interesting to see how long lived it is eg; Over next 6-24 months. My current employment is in retail sector. Dont hold any stock.

[bull....]

There has been an unusual level of activity post lockdown in some retail business. My cmp has also been up 25-30%. Pent up demand? Retail therapy? Getting out and about? Reclaiming a sense of normality perhaps? Replacement of broken appliances during lockdown. Upgrading etc. Will be interesting to see how long lived it is eg; Over next 6-24 months. My current employment is in retail sector. Dont hold any stock.

ANZ dont think it will last ... this week they saying

ANZ warns economy may head south again from November

https://www.stuff.co.nz/business/122308538/anz-warns-economy-may-head-south-again-from-november

[macduffy]

Well, of course it may. ANZ's economist has it both ways...…………"While not our forecast...……..

:rolleyes:

[nztx]

There has been an unusual level of activity post lockdown in some retail business. My cmp has also been up 25-30%. Pent up demand? Retail therapy? Getting out and about? Reclaiming a sense of normality perhaps? Replacement of broken appliances during lockdown. Upgrading etc. Will be interesting to see how long lived it is eg; Over next 6-24 months. My current employment is in retail sector. Dont hold any stock.

Dont forget that that there has been a fair bit of Govt injected Covid-19 borrowed & tossed about Ca$h sloshing around in the system

Should we expect similar retail patterns with other Retailers ? - HLG WHS etc

[nztx]

ANZ dont think it will last ... this week they saying

ANZ warns economy may head south again from November

https://www.stuff.co.nz/business/122308538/anz-warns-economy-may-head-south-again-from-november

Interesting isn't it ? .. two months after the second Wage Subsidy extension finishes & we just get past the Election nonsense

Are there still impacted businesses out there likely to close some doors & send some bods walking ?

[bull....]

Interesting isn't it ? .. two months after the second Wage Subsidy extension finishes & we just get past the Election nonsense

Are there still impacted businesses out there likely to close some doors & send some bods walking ?

A lot of the covid stimulus is designed to finish just before the election lol , mortgage deferral , wage subsidies etc but the effects of them stopping wouldnt show up till later. if the govt extends some of these schemes it probably push the down turn out to early next year is my guess

[+++++]

Absolutely. I think selling anything which covers a practical 'need' will always have longevity, for obvious reasons. The 'wants' and more 'feel good' non-essentials will surely dwindle as/if harder times ensue. Manipulation of human behaviour, marketing, programming, what is actually a 'need' or 'important'?? Differs depending on perspective, habit, available funds etc. Its possibly pretty fair game in 'general' retail up until and only if things become exponentially more tough for the 'middle-class' working folk and beyond.

[bull....]

breakout above 3.50 resistance level

[bull....]

breakout seems to be holding

[Captain Ramjet]

1/2 year results due out on the 8th. They had a really good rebound after the first lockdown so will be interesting to see if sales have continued to be strong

[bull....]

1/2 year results due out on the 8th. They had a really good rebound after the first lockdown so will be interesting to see if sales have continued to be strong

duke a good operator and other retailers seemed to have fared alright. question on a lot of minds might be will he pay a dividend?

[Filthy]

So.... BGP is trading 0.86c off its pre-Covid high of ~4.50 (23.6% off). In comparison, HLG is trading $1.63 off its pre-Covid high of ~$6.00 (37.3% off).
HLG with (what I perceive to be) a slightly better online offering, which is really important (especially if we bounce around these 'levels' for a bit). HLG also has a stronger divi (0.15 deferred, plus another in DEC and another in APR of maybe ~0.16 & ~0.15).... BGP with maybe 0.18(ish) total, so....at a guess, its maybe 7% vs 5%
Assuming both retailers (bearing in mind BGP is slightly more 'defensive' because of its diversification) continue to weather the storm and the divi-hounds (or beagles) come out in a low-interest environment, AND they both match their pre-covid results in ~2022, it seems to me that HLG has a bit more headroom for a return...
disc. hold HLG
disc. dont hold BGP, but happy to be convinced! (was looking for a ~$3.10 entry after Q2, but I seem to have missed the boat)

[emearg]

So.... BGP is trading 0.86c off its pre-Covid high of ~4.50 (23.6% off). In comparison, HLG is trading $1.63 off its pre-Covid high of ~$6.00 (37.3% off).
HLG with (what I perceive to be) a slightly better online offering, which is really important (especially if we bounce around these 'levels' for a bit). HLG also has a stronger divi (0.15 deferred, plus another in DEC and another in APR of maybe ~0.16 & ~0.15).... BGP with maybe 0.18(ish) total, so....at a guess, its maybe 7% vs 5%
Assuming both retailers (bearing in mind BGP is slightly more 'defensive' because of its diversification) continue to weather the storm and the divi-hounds (or beagles) come out in a low-interest environment, AND they both match their pre-covid results in ~2022, it seems to me that HLG has a bit more headroom for a return...
disc. hold HLG
disc. dont hold BGP, but happy to be convinced! (was looking for a ~$3.10 entry after Q2, but I seem to have missed the boat)

How much debt does HLG have? How much cash does it have in its war chest?

[winner69]

How much debt does HLG have? How much cash does it have in its war chest?

If rod sold his Kathmandu shares he would have heaps more eh

You know the answer to that question you asked bit get your point

[emearg]

If rod sold his Kathmandu shares he would have heaps more eh

You know the answer to that question you asked bit get your point

Actually I don't know much about HLG, but I presume they have debt because most listed companies do. BGR is pretty unusual in this regard. It served them well in 2008. It is serving them well now too I should think. This makes them a reasonably safe stock, at least in comparison with other retailers and I should imagine this is taken into account by the market.

[peat]

Actually I don't know much about HLG, but I presume they have debt because most listed companies do..

Not an unreasonable assumption but incorrect in this case
They don't have any significant debt.

[winner69]

Actually I don't know much about HLG, but I presume they have debt because most listed companies do. BGR is pretty unusual in this regard. It served them well in 2008. It is serving them well now too I should think. This makes them a reasonably safe stock, at least in comparison with other retailers and I should imagine this is taken into account by the market.

HLG have NO debt and at half year had $13m in the bank

They haven't had any debt for decades ..... fantastic stock management helps

[emearg]

HLG have NO debt and at half year had $13m in the bank

They haven't had any debt for decades ..... fantastic stock management helps

Told ya I didn't know much about them so that is good to know. My response to Filthy was made in good faith i.e. it was an honest question.

[winner69]

Told ya I didn't know much about them so that is good to know. My response to Filthy was made in good faith i.e. it was an honest question.

BGR's cash and KMD holding does complicate valuation a bit ....esp if using multiples and comparing to other retailers

[nztx]

BGR's cash and KMD holding does complicate valuation a bit ....esp if using multiples and comparing to other retailers


A rough calculation at lowest point of Covid times Mar - Apr suggested estimate of KMD
holding red ink on revaluation value in BGR Books was approx $100 Mil or 25% of BGR SHF

Since then the diluted BGR holding in KMD has significantly recovered in terms of SP

HLG & BGR are both pretty astute operators in their respective retail sectors & equally deserving of
much respect

I rate HLG slightly ahead due to their past up to recent dividend dividend record and lack of
equity holdings - rather 100% owned Australian interests, which have fared apparently well
when other competitors were failing.. The Rag trade is not easy for many operators at retail

As a holder of an expensive pre Covid-19 BGR bundle, the KMD holding very nearly meant not increasing,
which have now done & pleased to have done so. SP has now exceeded the averaged down cost

Let's see if BGR match HLG in now paying out something significant towards recognising
the cancelled March 2020 BGR Final Dividend

Discl: Holder in both HLG & BGR

[bull....]

HLG have NO debt and at half year had $13m in the bank

They haven't had any debt for decades ..... fantastic stock management helps

according to there interim report in 2020 they have 98m in total liabilities ( debt owing )

[bull....]

So.... BGP is trading 0.86c off its pre-Covid high of ~4.50 (23.6% off). In comparison, HLG is trading $1.63 off its pre-Covid high of ~$6.00 (37.3% off).
HLG with (what I perceive to be) a slightly better online offering, which is really important (especially if we bounce around these 'levels' for a bit). HLG also has a stronger divi (0.15 deferred, plus another in DEC and another in APR of maybe ~0.16 & ~0.15).... BGP with maybe 0.18(ish) total, so....at a guess, its maybe 7% vs 5%
Assuming both retailers (bearing in mind BGP is slightly more 'defensive' because of its diversification) continue to weather the storm and the divi-hounds (or beagles) come out in a low-interest environment, AND they both match their pre-covid results in ~2022, it seems to me that HLG has a bit more headroom for a return...
disc. hold HLG
disc. dont hold BGP, but happy to be convinced! (was looking for a ~$3.10 entry after Q2, but I seem to have missed the boat)

HLG has always had a high dividend yield , stocks with higher than usual dividend yields is because the market places a risk premium that the dividends might not be paid at some time so the compensation takes this into account. another example is AIR
BGR div yield is lower because as you say its products are more defensive than HLG. you can wear holey clothes if you choose but you cant make your coffee or toast with a broken unit

[bull....]

If rod sold his Kathmandu shares he would have heaps more eh

You know the answer to that question you asked bit get your point

BGR has better liquidity ratios than HLG and also has more assets per share if you divide total assets/ total liabilities and if you add in the 20 odd mil BGR saved on the last div rough calc might suggest 90m odd cash on hand now in the report to come. so BGR has far more flexiblity in the balance sheet.

[bull....]

BGR's cash and KMD holding does complicate valuation a bit ....esp if using multiples and comparing to other retailers

your right valuing retailers is not straight forward

[winner69]

according to there interim report in 2020 they have 98m in total liabilities ( debt owing )


....and Briscoes have a whopping $384m in total liabilities ...OMG that’s huge

Both have no bank debt ...that’s good

[bull....]

....and Briscoes have a whopping $384m in total liabilities ...OMG that’s huge

Both have no bank debt ...that’s good

bigger number the debt but as a ratio of comparison with hlg it is better , in fact most metrics of bgr are better than hlg

[winner69]

bigger number the debt but as a ratio of comparison with hlg it is better , in fact most metrics of bgr are better than hlg

Hlg have much higher stock turns .....envy of most global retailers .....ans very efficient use of capital

[bull....]

Hlg have much higher stock turns .....envy of most global retailers .....ans very efficient use of capital

inventory turnover as a stand alone is not a good indicator in my opinion. can be easy to manipulate by companies

[Mr Slothbear]

Very rarely will you find a company where management is both capable and their interests are so closely aligned to shareholders as with Briscoes. Sure it can result in less risk taking and possibly slightly less aggressive growth ambitions at times when Rod is getting on in years but when the Rod owns most of the ship you know he’ll see it through the storm with little fuss. If the stockmarket closes for 10 years you can be assured of excellent management and reliable dividends.

You’ll have to look very hard to find management forgoing their salary for the benefit of shareholders.

[Captain Ramjet]

up to $3.74 but on very small volumes. Sharesies crowd having a look now?

[bull....]

saved 20 odd million from not doing the end of year div to add to the 67 million in cash on hand already , so plenty of cash in the bank to reward share holders hopefully.

[Gisborne Grumbler]

according to there interim report in 2020 they have 98m in total liabilities ( debt owing )

Ummm yes... but that's operating working capital debt - normal expenses + employees and paper 'liabilities' created by the change in accounting standards for leases. No bank debt. The accounting standard changes are of course designed to make financial statements 'easier' to understand!

[bull....]

Ummm yes... but that's operating working capital debt - normal expenses + employees and paper 'liabilities' created by the change in accounting standards for leases. No bank debt. The accounting standard changes are of course designed to make financial statements 'easier' to understand!

umm yes ... still debt though just because it isnt owed to banks means nothing in the overall picture.

[winner69]

umm yes ... still debt though just because it isnt owed to banks means nothing in the overall picture.

Spose Briscoes debt of nearly $400m OK (relative to HLG)

[bull....]

Spose Briscoes debt of nearly $400m OK (relative to HLG)

but whats the ratios of debt thats the comparison not the headline numbers you know that winner

[winner69]

Well done Rod

Rod Duke, Group Managing Director, said: “We’re delighted to have produced a strong first half result despite the extraordinary upheavals experienced during this first six months. To achieve a profit so close to last year, with stores unable to open for 50 days of that time, is a great result.“

And a divie for those who like divies

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BGP/359417/330232.pdf

[winner69]

One thing that’s brilliant about Briscoes financial reporting they don’t bother with this EBITDA crap or underlying or normal or other such things.

[jmsnz]

Well done Rod

Rod Duke, Group Managing Director, said: “We’re delighted to have produced a strong first half result despite the extraordinary upheavals experienced during this first six months. To achieve a profit so close to last year, with stores unable to open for 50 days of that time, is a great result.“

And a divie for those who like divies

Yes, given the current circumstances that is a really good result. Also interesting to note the almost 100% growth in online sales which is now 22% of group sales and the comment that they have 'continued to be strong' after stores have re-opened.

[bull....]

awesome result considering the covid situation

increased dividend on last year
gross margins up
cash balance near 100m
sales this new period up on last year

pretty impressive

[bull....]

"The steps taken by the group to protect the company and preserve liquidity have ensured our balance sheet has remained strong which is critically important in these uncertain and unpredictable times. The strong balance sheet gives us the flexibility to continue to protect the business as well as fund strategic initiatives to grow company profitability," Duke said.
August sales had kicked off strongly in the second-half, Duke said

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12363008

[RRR]

Very rarely will you find a company where management is both capable and their interests are so closely aligned to shareholders as with Briscoes. Sure it can result in less risk taking and possibly slightly less aggressive growth ambitions at times when Rod is getting on in years but when the Rod owns most of the ship you know he’ll see it through the storm with little fuss. If the stockmarket closes for 10 years you can be assured of excellent management and reliable dividends.

You’ll have to look very hard to find management forgoing their salary for the benefit of shareholders.

Well said SB. The management is just 1 person Rod the great and he owns how much, 70%?? Also, he did not fire even a single employee during Covid. Profits will flow through as dividends. No debt. Institutions will not be interested in Briscoes and a good stock for us retail investors..

[bull....]

Well said SB. The management is just 1 person Rod the great and he owns how much, 70%?? Also, he did not fire even a single employee during Covid. Profits will flow through as dividends. No debt. Institutions will not be interested in Briscoes and a good stock for us retail investors..

harvey norman has a share holding in briscoes of 2 - 3% and ACC has a holding. small though.

im thinking they could do 20c divs/yr means a healthy 5% yield grossed up to 7% odd

[porkandpuha]

Heard Rod on the radio with HDPA yesterday afternoon saying second half sales had already started red hot and H2 could be one of the best half years on record. Not sure if this is usual language for Rod, but thought it was quite interesting.

https://www.newstalkzb.co.nz/on-demand/week-on-demand/
Tuesday 08/09/20 at 18:00, 7 mins in

[bull....]

Heard Rod on the radio with HDPA yesterday afternoon saying second half sales had already started red hot and H2 could be one of the best half years on record. Not sure if this is usual language for Rod, but thought it was quite interesting.

https://www.newstalkzb.co.nz/on-demand/week-on-demand/
Tuesday 08/09/20 at 18:00, 7 mins in

wow duke sure was excited and upbeat about the second half year being possibly on track for the companies best ever ( caveat he said was covid )

[winner69]

It’s a rare day that Rod gets this excited

Usually only when he’s putting the boot into The Warehouse

[Mr Slothbear]

It’s a rare day that Rod gets this excited

Usually only when he’s putting the boot into The Warehouse


sorry how do you mean Winner?

did he do an interview this morning?

[winner69]

Heard Rod on the radio with HDPA yesterday afternoon saying second half sales had already started red hot and H2 could be one of the best half years on record. Not sure if this is usual language for Rod, but thought it was quite interesting.

https://www.newstalkzb.co.nz/on-demand/week-on-demand/


Tuesday 08/09/20 at 18:00, 7 mins in

Link for mr slothbear

[Mr Slothbear]

Link for mr slothbear


oops sorry my bad. Thanks

https://www.newstalkzb.co.nz/on-air/heather-du-plessis-allan-drive/audio/bosses-rebuilding/bosses-rebuilding-briscoe-groups-rod-duke/

heres the direct clip

listening to it now and WOW have never in my days heard Rod talk like that!

[winner69]

oops sorry my bad. Thanks

https://www.newstalkzb.co.nz/on-air/heather-du-plessis-allan-drive/audio/bosses-rebuilding/bosses-rebuilding-briscoe-groups-rod-duke/

heres the direct clip

listening to it now and WOW have never in my days heard Rod talk like that!

Yep .....so so excited eh

And still probably being a bit conservative.

[bull....]

duke da man :t_up:

[emearg]

duke da man :t_up:

Back over four bucks today...is that you Bull?

5% gain in one day is pretty rare for this stock.

And yes, Rod sounding upbeat is unheard of in my almost twenty years of owning Briscoes stock.

[bull....]

Back over four bucks today...is that you Bull?

5% gain in one day is pretty rare for this stock.

And yes, Rod sounding upbeat is unheard of in my almost twenty years of owning Briscoes stock.

i didnt even know rod had done a talk so thanks to porknpuha for bringing the interview to everyones attention and no its not me buying i already own a few

[Captain Ramjet]

I'm up nearly 12% since I got in last week so been a very tidy little earner. Thanks to Bull for mentioning the breakouts a few pages back. Planning on an exit just below $4.20 if it heads that way next week. Will be interesting to see how many get on board before ex div

[flyinglizard]

Anybody knows why BRG annual report ended period is for 26 Jan 2020, rather than 31 Mar 2020?

[winner69]

Anybody knows why BRG annual report ended period is for 26 Jan 2020, rather than 31 Mar 2020?



Many retailers have periods ending ending January ....sort of ties In with seasonality, like all of christmas/New Year period and then July post winter peak.

Briscoes also do a 52 week reporting period (comparative periods equal) ending on a Sunday. Hence an ‘odd’ looking date this year of Jan 26th

From their AR -

Reporting period
These consolidated financial statements are in respect of the 52 week period 28 January 2019 to 26 January 2020 and provide a balance sheet as at 26 January 2020. The comparative period is in respect of the 52 week period 29 January 2018 to 27 January 2019. The Group operates on a weekly trading and reporting cycle resulting in 52 weeks for most years with a 53 week period occurring once every 5-6 years.

[flyinglizard]

Many retailers have periods ending ending January ....sort of ties In with seasonality, like all of christmas/New Year period and then July post winter peak.

Briscoes also do a 52 week reporting period (comparative periods equal) ending on a Sunday. Hence an ‘odd’ looking date this year of Jan 26th

From their AR -

Reporting period
These consolidated financial statements are in respect of the 52 week period 28 January 2019 to 26 January 2020 and provide a balance sheet as at 26 January 2020. The comparative period is in respect of the 52 week period 29 January 2018 to 27 January 2019. The Group operates on a weekly trading and reporting cycle resulting in 52 weeks for most years with a 53 week period occurring once every 5-6 years.


Thanks, I tried to figure out something in section 4.1. However, the backdoor has been hidden by them....

[Southern Lad]

Nick Mowbray on the case of Briscoe’s and other large employers who have claimed the Government COVID-19 wage subsidy but still reporting large profits:

https://www.rnz.co.nz/national/programmes/checkpoint/audio/2018763672/mowbray-slams-big-profitable-companies-taking-wage-subsidy

Businesses like Briscoe’s need to act appropriately or run the risk damaging their social licence. I note Rod Duke is quoted by Radio New Zealand as declining to comment. Will be interested to see if Mowbray’s call gains momentum.

[CraftyBeer]

Nick Mowbray on the case of Briscoe’s and other large employers who have claimed the Government COVID-19 wage subsidy but still reporting large profits:

https://www.rnz.co.nz/national/programmes/checkpoint/audio/2018763672/mowbray-slams-big-profitable-companies-taking-wage-subsidy

Businesses like Briscoe’s need to act appropriately or run the risk damaging their social licence. I note Rod Duke is quoted by Radio New Zealand as declining to comment. Will be interested to see if Mowbray’s call gains momentum.

Mixed feelings on this. If they played by the "rules" then it becomes a moral rather than a compliance issue. There's something to be said for the confidence that the wage subsidy provided to large employers to keep all their staff on board and not reduce their wages - which ultimately means fewer people claiming benefits and continuing income tax for the government. Realise it's a very complex issue though.

[flyinglizard]

Briscoe 2020 annual reported for period ended 26th of Jan 2020, the wage subsidies kicked in after that. The 2020 EPS does not reflect the situation, right? If Rod mentions this, investors may think about 2021 FY EPS, cause price fluctuation. I hope that is the reason, he refused to refund and kept quiet.

[bull....]

I'm up nearly 12% since I got in last week so been a very tidy little earner. Thanks to Bull for mentioning the breakouts a few pages back. Planning on an exit just below $4.20 if it heads that way next week. Will be interesting to see how many get on board before ex div

did you get your 4.20 traded around that price for 2 days

[peat]

I was hoping Rod would take them out at $4.20 /s

[bull....]

I was hoping Rod would take them out at $4.20 /s

have you some

[peat]

have you some

no I dont actually regrettably - it was just an off hand joke reference Elon and his naughty tweet a while back. Lol shows where my mind is at I thought you were asking if I had some weed.


I had noted your comments earlier and I had freed up some funds for retail sector by selling Michael Hill (+25% in 6 weeks) , and was going to buy some BGR a few days ago but I slept in and missed the starting bell that day and I do hate chasing trains that have left even though its often not that a bad move.

[Captain Ramjet]

did you get your 4.20 traded around that price for 2 days

Ashamedly I actually got greedy and thought it might push through 4.20 and find some support above that, based on the strength of the rise, so I held on...doh.

It had a strong close today (albeit on unimpressive volume) so will be looking to get out tomorrow. If it finds support above 4.20 after ex div I may look to get back in but I don't see that happening in the short term. Of course I'm wrong with alarming frequency so pay me little attention.

[Lion_graf]

http://www.stuff.co.nz/business/industries/123018935/shareholder-donates-briscoe-groups-wagesubsidised-dividend-to-charity-calls-for-others-to-do-the-same?cid=app-android

[King1212]

Go bull!!! I would do the same....but no position in BGR...

If HLG announcemened would follow...I am happy to do so....so far happy with the capital gain

[winner69]

This shareholder going to donate his $17.85 Briscoes divie to charity (for moral reasons)

Making a $100 donation so if the rebate is claimed get $30 odd bucks back

Hope charity more worthy of government support than the likes of Rod (his words)

https://www.stuff.co.nz/business/industries/123018935/shareholder-donates-briscoe-groups-wagesubsidised-dividend-to-charity-calls-for-others-to-do-the-same

[bull....]

at the time it was definately the right thing to do to take the subsidy for any business.

Housing is hot – so why aren’t realtors repaying the wage subsidy
https://thespinoff.co.nz/business/08-10-2020/housing-is-hot-so-why-arent-realtors-repaying-the-wage-subsidy/

how many businesses really needed it in hindsight?

[Greekwatchdog]

Paying back the Wage Subsidy: https://www.nzherald.co.nz/business/briscoe-group-announces-it-will-pay-back-the-wage-subsidy/L2IGU7GXDU634FZWOGVVY24EGM/

[couta1]

Paying back the Wage Subsidy: https://www.nzherald.co.nz/business/briscoe-group-announces-it-will-pay-back-the-wage-subsidy/L2IGU7GXDU634FZWOGVVY24EGM/ Pressure will be on the other companies named to pay it back now, those being HLG and SUM but particularly the former being in the same sector.

[Beagle]

Rod Duke is an incredibly wealthy man. The company is legally entitled to it but its nice to see him giving back but forcing minority shareholders to give their share back is debatable in my opinion. Extremely wealthy people shouldn't impose their philanthropic inclinations on others. My 2 cents.

[Southern Lad]

Businesses like Briscoe’s need to act appropriately or run the risk damaging their social licence.

Well done Briscoe's for doing the right thing.

[Greekwatchdog]

I get both arguments, Shareholders need to be mindful of public perception especially in times like these....

[CraftyBeer]

Duke said at the time of the interim results that the third quarter had started off very well so I guess with Q3 update due early Nov - and if it's a good one - there would just come more pressure to pay back, so they've decided to put this one to rest now.

[macduffy]

Well done Briscoe's for doing the right thing.

Yes, well done. The reputational damage of keeping the subsidy once profitability was confirmed wasn't worth the $$$'s. I expect one or two others to follow suit.

Disc: Holding BGR.

[percy]

Well done Briscoe's for doing the right thing.

Yes good on Briscoes.

[Snow Leopard]

....but forcing minority shareholders to give their share back....

I am a very happy Briscoe's shareholder and I can assure you that Rod has not knocked on my door and threatened to break my balcony furniture yet.

[winner69]

Pressure will be on the other companies named to pay it back now, those being HLG and SUM but particularly the former being in the same sector.

Dollars to donuts that WHS dont follow suit

They probably won't even think about it

[bull....]

duke da man , expect hallensteins , sum to fellow etc

[couta1]

duke da man , expect hallensteins , sum to fellow etc I reckon the pressure will come on the others once the election is over if they are not forthcoming.

[peat]

I reckon the pressure will come on the others once the election is over if they are not forthcoming.

actually Jacinda Ardern didnt make it a big deal in the candidate contest hosted by Paddy Gower. She seemed (to me) to accept that if they were within the rules she wasnt going to fight hard to get it back. So it depends what pressure you mean. Public and media pressure?? THere may be a bit of that ....

[IAK]

Well done Briscoes - respect.

[Beagle]

I reckon the pressure will come on the others once the election is over if they are not forthcoming.

On what basis ? Change the law retrospectively and do a complete about face on the terms of the wage subsidy scheme that Labour itself established ?

Labour set the terms and there are many companies that claimed the subsidy that are well within the scope of those terms so are perfectly entitled to it and should keep it.

Lets all not forget that the wage subsidy was intended to keep staff in work and only covered part of the staff costs.

Minority shareholders deserve the respect to undertake their own philanthropic decision making without having extraordinary rich businessmen impose their wishes on minority shareholders.

Call me a cynic if you like but I think its a cunning marketing ploy to pretend to be "Mr Nice guy" so that customers spend up big at Briscoes stores in the lead up to Christmas.

Briscoes have been running disingenuous and in many cases very misleading sales and marketing programs for many years...their regular prices are a total rort. Rod Duke Mr nice guy...yeah right....where's my Tui ?

[winner69]

On what basis ? Change the law retrospectively and do a complete about face on the terms of the wage subsidy scheme that Labour itself established ?

Labour set the terms and there are many companies that claimed the subsidy that are well within the scope of those terms so are perfectly entitled to it and should keep it.

Lets all not forget that the wage subsidy was intended to keep staff in work and only covered part of the staff costs.

Minority shareholders deserve the respect to undertake their own philanthropic decision making without having extraordinary rich businessmen impose their wishes on minority shareholders.

Call me a cynic if you like but I think its a cunning marketing ploy to pretend to be "Mr Nice guy" so that customers spend up big at Briscoes stores in the lead up to Christmas.

Briscoes have been running disingenuous and in many cases very misleading sales and marketing programs for many years...their regular prices are a total rort. Rod Duke Mr nice guy...yeah right....where's my Tui ?

Rather have a Fosters if i was really desperate

Jeez I love it when you get really really grumpy

[couta1]

On what basis ? Change the law retrospectively and do a complete about face on the terms of the wage subsidy scheme that Labour itself established ?

Labour set the terms and there are many companies that claimed the subsidy that are well within the scope of those terms so are perfectly entitled to it and should keep it.

Lets all not forget that the wage subsidy was intended to keep staff in work and only covered part of the staff costs.

Minority shareholders deserve the respect to undertake their own philanthropic decision making without having extraordinary rich businessmen impose their wishes on minority shareholders.

Call me a cynic if you like but I think its a cunning marketing ploy to pretend to be "Mr Nice guy" so that customers spend up big at Briscoes stores in the lead up to Christmas.

Briscoes have been running disingenuous and in many cases very misleading sales and marketing programs for many years...their regular prices are a total rort. Rod Duke Mr nice guy...yeah right....where's my Tui ? Its all about perception Beagle.PS-Dont worry the HLG divvy will still be safe if they pay back the 5 mill odd, just the sp movement may be crimped for a while.:p

[Beagle]

Its all about perception Beagle.PS-Dont worry the HLG divvy will still be safe if they pay back the 5 mill odd, just the sp movement may be crimped for a while.:p

Yes...it is all about perception, a trick Rod Duke has been using very successfully for many years. He makes people perceive they are getting a bargain when they're not.
The last time I went into Briscoes...I don;t bother now unless there is no alternative I was looking for a very small lite vacuum cleaner for my office a few months back, not a huge area to vacuum and was tired of lugging the big home vacuum cleaner down to my office.

Went into Briscoes and they has some small cheap piece of Chinese made junk there for $599 but was on sale for more than 60% off at $199. What a bargain...but my Beagle nose smelled a rat because it was so small and pathetic and couldn't possibly be worth anything like $599 retail which seemed like a total rort.

Went into Placemakers afterwards to spend my airpoints before they expire or get confiscated by Air New Zealand and bought a better looking more robust looking machine for $99. Briscoes have been rorting customers for decades with their fake sales...just go to K Mart and their regular everyday prices are generally around half what Briscoes prices are on so called sale.

People thinking this is a decent company doing the right thing are simply not aware that Briscoes use some very disingenuous sales tactics on unsuspecting people and have been doing so for decades.

[winner69]

A bit like Hallensteins denims at $99
59.
Only buy them when they down to NOW $29.99

That's marketing for you

[couta1]

When is a sale not a sale? when its a permanent Briscoes sale.

[Beagle]

A bit like Hallensteins denims at $99
59.
Only buy them when they down to NOW $29.99

That's marketing for you

Suppose I better not post another link to a hot model on a Glassons website wearing a tiger bikini for only $19 lol

[Beagle]

When is a sale not a sale? when its a permanent Briscoes sale.

Its amazing how many people are conned by this though. The lovely Briscoes lady, Tammy wouldn't get involved in anything disingenuous, surely not :ohmy:

[winner69]

When is a sale not a sale? when its a permanent Briscoes sale.

Biggest price fixers are Mitre 10 and Bunnings

The find the same product at a lower price and we beat it by 15% or whatever is just price fixing

Don't stock much product in common and no incentive to lower prices of common products is there

[macduffy]

Its amazing how many people are conned by this though. The lovely Briscoes lady, Tammy wouldn't get involved in anything disingenuous, surely not :ohmy:

You are grumpy today, Beagle! Come on, admit that Briscoes have done the right thing by paying back a subsidy that, in the event, they didn't need.

:)

[IAK]

Yes...it is all about perception, a trick Rod Duke has been using very successfully for many years. He makes people perceive they are getting a bargain when they're not.
The last time I went into Briscoes...I don;t bother now unless there is no alternative I was looking for a very small lite vacuum cleaner for my office a few months back, not a huge area to vacuum and was tired of lugging the big home vacuum cleaner down to my office.

Went into Briscoes and they has some small cheap piece of Chinese made junk there for $599 but was on sale for more than 60% off at $199. What a bargain...but my Beagle nose smelled a rat because it was so small and pathetic and couldn't possibly be worth anything like $599 retail which seemed like a total rort.

Went into Placemakers afterwards to spend my airpoints before they expire or get confiscated by Air New Zealand and bought a better looking more robust looking machine for $99. Briscoes have been rorting customers for decades with their fake sales...just go to K Mart and their regular everyday prices are generally around half what Briscoes prices are on so called sale.

People thinking this is a decent company doing the right thing are simply not aware that Briscoes use some very disingenuous sales tactics on unsuspecting people and have been doing so for decades.

Beagle, next time splash out and get a Dyson, even vacumns up the dog hair.

[Jaa]

Good for Briscoes, one of many now doing the right thing.

Ryman should follow suit. Reporting record profit and dividend payouts while taking corporate welfare meant for struggling businesses is a bad look and evident of weak, low quality leadership.

[Ferg]

Biggest price fixers are Mitre 10 and Bunnings

The find the same product at a lower price and we beat it by 15% or whatever is just price fixing

Don't stock much product in common and no incentive to lower prices of common products is there

Agree 100%. You think you have found something that is cheaper at one from the same supplier, but on closer inspection it is 10mm or 20mm smaller, or some such thing like a different pack size. It's an absolute con job.

[Zaphod]

Agree 100%. You think you have found something that is cheaper at one from the same supplier, but on closer inspection it is 10mm or 20mm smaller, or some such thing like a different pack size. It's an absolute con job.

Bunnings have different SKU numbers and have used these, at least in the past, to avoid their "beat it by 15%" clause.

Also don't think you're getting a bargain on any and every product that these companies sell. There are large number of items that are more expensive at Mitre10 (for example) than other retailers. They bank on the big-box convenience factor, with low lead-in prices on regular sellers.

But worse still are the business practices of these two companies with their suppliers.

I don't have any specific information about how Briscoes interact with their suppliers, but I expect it will be very similar.

[jimdog31]

Rod buying up $1 million of shares.

[bull....]

Rod buying up $1 million of shares.

not from his div either

[Mr Slothbear]

Hes flagged strong growth and shareprice is not reflecting true value of the business so easy to see why hes buying. Been like this for a long while now, i've always put it down to low float and not much interest from analysts and instos

He has one of the keenest eyes for value around

[Sideshow Bob]

Smashing it.....

https://www.nzx.com/announcements/362483

3rd Quarter Sales to 25 October 2020

3/11/2020, 9:42 amMKTUPDTEBriscoe Group Limited (NZX/ASX code: BGP)
Highlights for the 3rd quarter (13 weeks) to 25 October 2020:

• Total Group sales $161.3 million, +14.97%
• Homeware sales growth, +12.28%
• Sporting goods sales growth, +19.48%
• Online sales mix of total Group sales, 16.3%
• $11.5 million wage subsidy repaid in full

Third Quarter: 27 July 2020 – 25 October 2020:

The directors of Briscoe Group Limited announce unaudited sales for the third quarter period, being the thirteen weeks ended 25 October 2020, of $161.3 million, 14.97% above the $140.3 million for the same quarter last year. For the quarter, homeware sales increased by 12.28% to $98.7 million, while sporting goods sales were $62.6 million, an increase of 19.48% from the $52.4 million achieved for the equivalent quarter last year.

Year-to-date: 27 January 2020 – 25 October 2020:
Unaudited sales for the thirty-nine-week period from 27 January 2020 to 25 October 2020 were $453.7 million, an increase of 2.35% on the $443.3 million achieved for the first three quarters of last year. The Group’s homeware segment increased sales by 1.30% during this period and the sporting goods segment by 4.14%.
Group Managing Director, Rod Duke said, “The significant increase in sales reported for the second quarter has continued through this third quarter. After trading interruptions due to Covid-19, we’re delighted in the way the Group has rebounded to produce consecutive quarterly double-digit sales growth. Importantly, this augurs well for continued strong sales as we commence the crucial final quarter.”
On 8 September the company announced a half-year net profit after tax (NPAT) of $28.0 million. This result included $11.5 million of government wage subsidy which the Group was eligible to receive.

On 16 October Board Chair, Dame Rosanne Meo, announced that after experiencing sustained sales growth since the end of the national lockdown, the Group would pay back all of the $11.5 million wage subsidy. Dame Rosanne said, “It’s the right decision for our company to pay back the subsidy given the strong sales recovery we experienced and reduced likelihood of another full national lockdown. We supported our employees in full through-out this difficult year and there were no redundancies or permanent store closures.

“Notwithstanding the interim dividend announced by the Board, we think it’s important to recognise the support of our shareholders who have taken the financial brunt of Covid-19. They missed $28 million through the cancellation of our dividend payment back in March when the national lockdown was first announced. Although it was pleasing to be able to reinstate dividend payments at the half-year they are still one significant payment down.

“It is a credit to the team led by Rod that we have come through this crisis so strongly. The energy and success of the team in continuing with new developments and initiatives during this extraordinary period has far exceeded the Board’s expectations.”

Rod Duke said, “Clearly the repayment of the wage subsidy will impact our second-half and full-year results, as will the recent announcement by Kathmandu that they will not be paying a dividend at all for their financial year ended July 2020. Last year Briscoe Group received $6.8 million in dividends from our investment in Kathmandu. However, notwithstanding this, I am optimistic that if the current trading momentum continues, we can still produce a full-year result to the end of January of which we can be extremely proud.

“The massive disruption to trading from Covid-19 has produced opportunities for us to re-think the way we construct our promotional activity and also how we process and manage the flow of inventory through the business. This is having a very positive impact on gross profit margin.

“The Group’s online business continues to show impressive growth over last year and for the third quarter ending 25 October 2020 it represented 16.3% of total Group sales. The accelerated roll-out of Click and Collect across the entire store network was a significant achievement for us during lockdown. More than 25% of online sales during the third quarter were produced via our Click and Collect operation.

“In addition, our strategic initiatives around; enhancing our customers’ shopping experience, improvements within our supply chain and sourcing new revenue streams are progressing well and we expect to see some ‘quick-wins’ emerging before the end of this financial year.

“I am very confident that with the initiatives we have in place, the Group can produce a remarkable full-year result. Just how close we get to achieving last year’s profit will depend on how buoyant trading is across the crucial 4th quarter.”

Tuesday 3 November 2020

[Mr Slothbear]

“MKTUPDTE: BGP: 3rd Quarter Sales to 25 October 2020

Briscoe Group Limited (NZX/ASX code: BGP)

Highlights for the 3rd quarter (13 weeks) to 25 October 2020:
o Total Group sales $161.3 million, +14.97%
o Homeware sales growth, +12.28%
o Sporting goods sales growth, +19.48%
o Online sales mix of total Group sales, 16.3%
o $11.5 million wage subsidy repaid in full

Third Quarter: 27 July 2020 - 25 October 2020:
The directors of Briscoe Group Limited announce unaudited sales for the third
quarter period, being the thirteen weeks ended 25 October 2020, of $161.3
million, 14.97% above the $140.3 million for the same quarter last year. For
the quarter, homeware sales increased by 12.28% to $98.7 million, while
sporting goods sales were $62.6 million, an increase of 19.48% from the $52.4
million achieved for the equivalent quarter last year.”

Wow pretty much square on my growth estimate. Great result from Rod and the team, they should be very proud

[King1212]

Cheeky boss...he knew the sales will be up..he loaded heap of shares and saying it is better to invest in BGP instead of term deposit

[Snow Leopard]

Nice numbers it seems that Kiwi's are spending while they can on what they can.

But always good to think beyond the latest sales figures and consider both probable and improbable futures and how long this great run can last.

Socks are for Xmas but a decent frying pan is for life. :cool:

[macduffy]

Socks are for Xmas but a decent frying pan is for life.

True, but they don't make decent frying pans like they used to.

:(

[King1212]

Depend on what u are frying...possums meat tend to hard to fry...grill better

[Beagle]

Depend on what u are frying...possums meat tend to hard to fry...grill better

Had a very tasty gourmet rabbit pie once. Probably slow cooked in one of Briscoes pressure cookers. Good result for Briscoes sales. Pretty cool that an insider can buy on inside knowledge and not be prosecuted and nobody dares to even complain about it. Wonder what's on so called sale this weekend ?

[percy]

“MKTUPDTE: BGP: 3rd Quarter Sales to 25 October 2020

Briscoe Group Limited (NZX/ASX code: BGP)

Highlights for the 3rd quarter (13 weeks) to 25 October 2020:
o Total Group sales $161.3 million, +14.97%
o Homeware sales growth, +12.28%
o Sporting goods sales growth, +19.48%
o Online sales mix of total Group sales, 16.3%
o $11.5 million wage subsidy repaid in full

Third Quarter: 27 July 2020 - 25 October 2020:
The directors of Briscoe Group Limited announce unaudited sales for the third
quarter period, being the thirteen weeks ended 25 October 2020, of $161.3
million, 14.97% above the $140.3 million for the same quarter last year. For
the quarter, homeware sales increased by 12.28% to $98.7 million, while
sporting goods sales were $62.6 million, an increase of 19.48% from the $52.4
million achieved for the equivalent quarter last year.”

Wow pretty much square on my growth estimate. Great result from Rod and the team, they should be very proud

Those online sales look excellent.

[Mr Slothbear]

Had a very tasty gourmet rabbit pie once. Probably slow cooked in one of Briscoes pressure cookers. Good result for Briscoes sales. Pretty cool that an insider can buy on inside knowledge and not be prosecuted and nobody dares to even complain about it. Wonder what's on so called sale this weekend ?



Pretty sure Rod bought in the disclosure window after the half year results. He has flagged this growth very clearly. One listen to his RNZ interview and you'd think he was shouting this result weeks ago from the rooftops.

and Percy no mention of your yearly plug for Estar online? :)

[King1212]

sales will going up especially coming to this Christmas and summer. As kiwis can not go overseas...families tend to spend on camping, buying sports stuffs and household items.

[bull....]

the biggest threat is retailers running out of stock

[King1212]

All retailers will see Christmas comes today!

[bull....]

bgr been consolidating at resistance 4.20 for a while now , a break to the upside looks like targeting 4.50 short term ( top of the weekly bollinger)

underperforming hlg , kmd last mth as far as performance goes in price action so catch up time?

[CraftyBeer]

Early Sep I was tossing up on a local retailer (given no-one spending money on travel so it's ending up somewhere) and decided either HLG or BGP - went with the latter. BGP price has improved around 50c but HLG has been nearly $2.50! Should have split the investment between the two - ah hindsight.

[bull....]

Early Sep I was tossing up on a local retailer (given no-one spending money on travel so it's ending up somewhere) and decided either HLG or BGP - went with the latter. BGP price has improved around 50c but HLG has been nearly $2.50! Should have split the investment between the two - ah hindsight.

in hindsight yes. over the ytd only around 4% in it but date of entry had a big impact on return for the year

hlg - ytd 13% , 3 mths 51% and 1 mth 15%
bgr ytd 9.5% 3 mths 21% and 1 mth 2%

[peat]

price has now smoked 420 resistance
12116

[bull....]

price has now smoked 420 resistance
12116

all time highs around 4.50 , im expecting it get smoked this time. forward sales into next year are looking all time great. justify all time high share prices

[bull....]

Lines and busy car parks as Kiwis partake in Black Friday sales

In Lower Hutt, cars were queued down the road to get into the Briscoes and Rebel Sport carpark, marshalled by staff in high visibility vests.

In Rebel Sport, the lines to pay were 20 people deep
https://www.stuff.co.nz/business/123529218/lines-and-busy-car-parks-as-kiwis-partake-in-black-friday-sales

same my local , crazy rod need to drop some more stock from his helicopter cause the ques are to long to get in

[bull....]

rod duke interview

Briscoes' biggest day ever27 Nov, 2020 07:52 PM

https://www.nzherald.co.nz/business/focus-live-briscoes-biggest-day-ever/CKT5VQCMAILH4FI5MVJPUS7FAU/

biggest day of sales ever

[Waltzing]

wonder what harvey normans share price will be ... to late to buy aussi.. we move off shore weeks ago for travel assets

[macduffy]

wonder what harvey normans share price will be ... to late to buy aussi.. we move off shore weeks ago for travel assets

Whatever that means!

[CraftyBeer]

Lines and busy car parks as Kiwis partake in Black Friday sales

In Lower Hutt, cars were queued down the road to get into the Briscoes and Rebel Sport carpark, marshalled by staff in high visibility vests.

In Rebel Sport, the lines to pay were 20 people deep
https://www.stuff.co.nz/business/123529218/lines-and-busy-car-parks-as-kiwis-partake-in-black-friday-sales

same my local , crazy rod need to drop some more stock from his helicopter cause the ques are to long to get in




My local Briscoes also had long queues on Friday night at 7pm with cars lined up in the car park for a space - Kiwis appetite for new pillows and duvet covers seems to be boundless.

[emearg]

My local Briscoes also had long queues on Friday night at 7pm with cars lined up in the car park for a space - Kiwis appetite for new pillows and duvet covers seems to be boundless.

People with houses can only see the good times. Can't go to Europe this year so gotta spend the money on something. God forbid they might save it for a rainy day...that ain't really the Kiwi way.

[Baa_Baa]

My local Briscoes also had long queues on Friday night at 7pm with cars lined up in the car park for a space - Kiwis appetite for new pillows and duvet covers seems to be boundless.

Saturday afternoon at Briscoes in Napier was a zoo, but what really stood out was the size of basket, with heaps of people maxing out their volume of purchases. Quite impressive how much stuff was going out the door!

[emearg]

Saturday afternoon at Briscoes in Napier was a zoo, but what really stood out was the size of basket, with heaps of people maxing out their volume of purchases. Quite impressive how much stuff was going out the door!

Gotta buy as much as the credit card will allow just in case the sale was a one off? :p

[Ltw]

I've never seen anything like it, our local was crazy.
Car parks full roadside grass areas full basically anywhere you could park a car, was taken with cars waiting to fill any gaps as soon as they opened up
Traffic was an absolute nightmare jammed up everywhere.

I can see why it was there biggest sale event ever. interestingly I haven't heard or noticed the constant sales marketing on the radio and TV "60% off" for a little while.
Maybe they don't need it or the days of those discounts are few and far between.
Hopefully we'll see some record profits to go with the record sales..

[MauroNZ]

price has now smoked 420 resistance
12116


Hey Peat, out of curiosity do you only use a 6M period time frame to look on the chart when you want to make a decision? what can you comment on one year time frame? thanks.

[MauroNZ]

Last Saturday in Porirua most of the business were very busy, Briscoes, The Warehouse, Farmers, HLG. Probably The Body Shop was the only one not so busy.

[peat]

Hey Peat, out of curiosity do you only use a 6M period time frame to look on the chart when you want to make a decision? what can you comment on one year time frame? thanks.
no
i dont limit to any particular time frame
i start at the long time frames and work down till i see something. in this case the 6 month chart showed what I saw the best.


EDIT MUCH LATER

the one year brings in the low from Covid and the high in Jan. it could show possible resistance at 4.48 (this years high in Jan) although I actually think that peak did not form a great resistance area but no doubt will wobble around a bit up here and of course my general view is that equities are overvalued so the overall market may have a bigger impact on BGP than anything else now. But I still hold BGP as 10% of equity portfolio after I got out of Michael Hill too early.

[emearg]

Share price keeps climbing. Now valued at more than a billion dollars.

Why isn't it in the NZX50? Has higher market cap. than many others that are included. Is it due to Rod being the majority owner? Any thoughts appreciated.

[Mr Slothbear]

Share price keeps climbing. Now valued at more than a billion dollars.

Why isn't it in the NZX50? Has higher market cap. than many others that are included. Is it due to Rod being the majority owner? Any thoughts appreciated.

yes you’re correct NZX 50 eligibility is judged on free float.

in saying that I believe briscoes is getting very close to being in the running for taking a spot in the near future. If that happened I’m sure that would make todays jump look small

[CraftyBeer]

Seemed a sizable jump after market close last night? Maybe just playing catch up on the other retailers/general market sentiment this week.

[bull....]

4.50 was an important level , on an upwards i say. big div to look forward to in the new year maybe even $5+

[JohnnyTheHorse]

4.50 was an important level , on an upwards i say. big div to look forward to in the new year maybe even $5+

Agree. The illiquidity of this one can result in quite big daily swings, however with technical breakout it'll keep moving its way upwards. Good buying if it tests 4.50 again.

[bull....]

duke the man :t_up:

Special Dividend and Market Update
The directors of Briscoe Group Limited announce that today they resolved to pay shareholders a special fully imputed dividend of 6.0 cents per share.

https://www.nzx.com/announcements/364834

[nztx]

Whoah - that bound to get SP jumping - 5 buckses anyone ? ;)

[Mr Slothbear]

Sublime. Nothing like a large juicy treat right before christmas

[bull....]

Sublime. Nothing like a large juicy treat right before christmas

nice xmas present from briscoes. treat there s/h well.

and it is easily payable from cash reserves. i had them at 100m cash by end of year but have to deduct subsidy payback and now special div should leave well over 60m cash still as back of envelope guess as i havntt fully updated my numbers yet. so im still wondering what briscoes will do with all that cash next year .... buy another company or return more to share holders

[nztx]

Sublime. Nothing like a large juicy treat right before christmas


Actually Ex Div date is 23 Dec & Payment date is 20 Jan 21

[bull....]

Actually Ex Div date is 23 Dec & Payment date is 20 Jan 21

nice div to come in march too normally they pay 12.5c so maybe 13c this time add to the 6c now thats nearly 20c off divs which is nearly 4% return for say 4 mths holding time ... very nice and throw in some capital gains hopefully very nice return in the next year

[CraftyBeer]

duke the man :t_up:

Special Dividend and Market Update


The directors of Briscoe Group Limited announce that today they resolved to pay shareholders a special fully imputed dividend of 6.0 cents per share.

https://www.nzx.com/announcements/364834


I'd been wondering what they were going to do with that cancelled dividend money given they've had such a good run during Covid. This also probably explains the jump mid-week in the share price - a few whispers likely got out.

[winner69]

Briscoes share price up nearly 25% since they said they repaid covid wage subsidy.

HLG on the other hand only up 10%

Made we wonder if the market is rewarding a good corporate citizen for repaying the subsidy ....enhanced reputation goes a long way ...and they outperform their peers

Just a thought

Whatever Rod keeping punters happy

[macduffy]

Whatever Rod keeping punters happy

……… and the biggest shareholder.

:)

[nztx]

Briscoes share price up nearly 25% since they said they repaid covid wage subsidy.

HLG on the other hand only up 10%

Made we wonder if the market is rewarding a good corporate citizen for repaying the subsidy ....enhanced reputation goes a long way ...and they outperform their peers

Just a thought

Whatever Rod keeping punters happy

Have you considered my good friend - that a 'higher % of a lower SP' can equal or even be less than 'a lower % of a higher SP' ?

HLG still seems to have advanced further in $ terms - well doesn't it ? ;)

Tomorrow or the next day on a new upcoming update for HLG could even turn mysteriously the tables further too ..

[bull....]

i consider most on this site are long term investors so looked at this way bgp is outperforming hlg as an investment ytd. if you were a trader and timed entry and exits to perfection hlg would have performed better over only some timeframes

bgp ytd

26% + divs

hlg ytd

10% + divs

and as winner mentioned bgp paying the wage subsidy back could very well have been a catalyst for bgp out performance , not only did rod create great brand awareness by doing this he probably brought new customers on board. time will tell if hlg by not paying back the subsidy affects there brand

bgp mthly

17%

hlg mthly

6%

[winner69]

Have you considered my good friend - that a 'higher % of a lower SP' can equal or even be less than 'a lower % of a higher SP' ?

HLG still seems to have advanced further in $ terms - well doesn't it ? ;)

Tomorrow or the next day on a new upcoming update for HLG could even turn mysteriously the tables further too ..

Isn't that a bit of weird logic isn't it my good friend?

[Mr Slothbear]

Bgp benefits much more from covid than hlg.

Everyones inside and wants to freshen up their home or home office. Especially also as work from home is a permanent fixture going forward for myself included.

For hlg its the opposite, no need for new clothes if you can work in your pjs at home half the week

[Mr Slothbear]

New ATH $5.10

edit, now $5.20 and mcap now over 1.1b

[bull....]

New ATH $5.10

edit, now $5.20 and mcap now over 1.1b

and a seller at $56 thats a price i would like

[Habits]

Up another X percent today. As someone who missed the latest rally what would you suggest I do .... buy in now when the stock is looking heady and had a good run, or find another retail stock to invest in.

[macduffy]

Always invest in the best of breed!

:)

[Habits]

Always invest in the best of breed!

:)

That's where I go wrong always backing the dogs ... apologies to our resident Beagle ;)