It is pleasing to see the better performing retailer is being recognised by the market.
Attachment 6110
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It is pleasing to see the better performing retailer is being recognised by the market.
Attachment 6110
I don't hold BGR and of course cure kids is something I support, but $400,000 is quite a bit to donate to charity. That's nearly 2c a share.
An undisclosed amount came from customers - so not all for from Briscoes.
Not having a shot at Briscoes at all, but always wondered a little about corporate motivations with such charity donations.
Briscoes and many other retailers collect money for charity, which is great. However the donation as in last night comes from the retailer, in is case Briscoes. So they get some good publicity from it - they could have donated $1k and customers the other $399k. Who knows, although might be in their annual report. However many I guess would have more self serving motivations.
As I said, not a shot at BGR at all. And a great cause.
I know from the Chch EQ for instance, the company I work for made a sizeable contribution. Some of which was in kind, some of it was money from our customers, and some from the company. I know it all wasn't altruistic.........but I guess it just goes with the territory.
When I owned a retail store I had organizations,and no end of charities approaching me for donations.I got sick of it.
Maybe,and just maybe Briscoes can get shot of these people by saying "we only support cure kids".
Indeed Percy. I know our company gets hit up by all and sundry, and can understand completely getting sick of it, especially when often no or little benefit to your business.
Yes, the answer could be just to have one charity - especially something as worthwhile as Cure Kids.
The anticipated boringly excellent result from BGR.
NPAT up 23%, increased dividend. I continue to hold.
:cool:
http://www.nbr.co.nz/article/briscoe...cord-bd-161864
Glad I snagged some of these pre world cup
and still $60m plus sitting in the bank
On the other hand, the N.Z. dollar has now come back a fair bit making imports more expensive, customers now face higher mortgage rates and the economy is being impacted by a massive slide in Dairy prices.
That and the relentless increase in online trading, is this as good as it gets and are they expensive on a PE basis for a retailer ????? I was in one of their stores last week and walked out underwhelmed and gobsmacked at the price they wanted for a 2 pack of genuine Oral B toothbrush heads ($27.95). They didn't have a four pack which my wife usually gets at the supermarket for the same price. I walked out in disgust as a matter of principle..these things are probably made under licence in China for 2 or 3 cents each.
Came home, jumped on Trade me and ordered a 2 x 4 packs of the generic copy toothbrush heads for $6 including delivery. 75 cents per toothbrush head instead of $14.00.
To add insult to injury I was in Harvey Norman later in the week and noticed four packs of genuine Oral B toothbrush heads for $17.95 which appeared to be their regular price.
And just to prove that's not an anomoly here's Noel Leemings price for the identical product
http://www.noelleeming.co.nz/shop/ho...prod99541.html
Makes me wonder if all those Briscoes sales they have every 2 minutes are nothing but a great big price CON because even at 30% off you're paying through the nose and then some. I wonder if BGR is code or acronym for Burglar ?
Next time I want anything in the way of product lines that Briscoes sells I'm going straight on Trade Me, saving time, money and petrol :)
Roger - you obviously not a retailer (of note). Rod has it in his veins - a born and bred retailer
For all his sales Rod makes a 40% margin - mind you his cost of doing business is 32% of sales which only leaves him 5% after tax so he has to cream it on some items eh.
Rod unlike some retailers knows instinctively that if you buy lots of things for a buck each you need to sell them all at an average of $1,67 or else you go broke .... and iyo get there you sell x at $2.50 and y at $2.00 and the rest during the sale at $1.25
Probably doesn't even use a calculator - just like darts players seem to know that 3*19 plus 2*16 plus 2*15 is 50 is 119 in an instant. Pure mathematical geniuses until they go shopping and they don't know that 1 margarine at $2.62 and bottle milk at $3.99 is $6.61
Rod is usually so laid back and hardly ever gets excited about things but heck he has taken some happy pills lately and is full of it. The future is bright as
http://www.radionz.co.nz/audio/player/20148458
Briscoes been selling some Royal Doulton and Wedgewood stuff for a while. Apparently for some of the products (tableware) Briscoes are one of top resellers in th world. So mpressed were were Wedgewood they approached Rod and want to do heaps more business with him.
Jeez Wedgewood and Royal Doulton in Briscoes .....real step up in class eh.
Folklore has it when asked what impact on the likes of Kirkcaldies Rod said they will just have to lower their prices eh .....and increase their losses
I noted they intend to spend more on their on line presentation,as their on line business has certainly grown with the help of www.estaronline.com.
Wedgewood and Royal Doulton on line could become even cheaper??
More of the same announced today. Here is part of Rod's commentary:
"As we begin the crucial final quarter we remain optimistic in our outlook. We are certainly encouraged by our performance to date and are confident that the Group's full year tax paid profit will easily exceed last year's tax paid profit result of $33.58 million."
"More of the same announced today."
Exactly.. it's no surprise when BGR surprises the market.
BGR did well when other retailers struggled, and now retail seems to be recovering.
Now there's a best of breed stock.
Encouraging too that there was no price increase (info leak) before this announcement.
Have upgraded to 12% pa long term div growth - $4.01 fair value.
"Easily exceed" - my guess is a 25% plus improvement in FY 15 profit and div.
Serious question. Is Briscoes ever NOT on sale? I'm not complaining that's for sure!
Tuesday to Thursdays I think unless there is a public holiday just before or during those days BFG!
Yet another record profit!
:)
How many years has it been since they didn't have record growth in sales and profit? So boring! :)
I see another big retailer is struggling. Perhaps they need to attend night classes taught by Mr Rod Duke? LOL
Yes, I've been in since the IPO and can't remember any disappointments. But then, there's a lot of things I can't remember these days!Quote:
How many years has it been since they didn't have record growth in sales and profit? So boring!
:)
Yes, I've been in since the IPO and can't remember any disappointments. But then, there's a lot of things I can't remember these days!Quote:
How many years has it been since they didn't have record growth in sales and profit? So boring!
:)
And I repeat myself.
;)
The fact that there's been no acquisitions reflects the company's - ie Rod Duke's - view that there isn't any retail business worth buying out there, at least at a sensible price. A commentary on the difficulties facing retail generally?
Whatever Rod's doing, it's still working!
http://www.nzherald.co.nz/briscoe-gr...ectid=11444132
:)
I like how The Warehouse gets a subtle mention :)
"For a few years I think people have been satisfied with cheapest price, poorest quality and I think they've grown out of that now because very often when you operate in that category, your busiest department is returns," Duke said.
"I think customers' perception of value changes over time with poor experience and I think for at least the last six or seven years we've enjoyed extraordinary growth compared to some of our peer group."
Rod's ASM speeches are almost as inspirational as Warren Buffett's ones, well almost
A must read
https://www.nzx.com/files/attachments/212966.pdf
great sale today at manukau briscoes, I wandered in as I was buying something near by to have a look even ended buying some plates. they had all six cashiers working and ladies were buying stacked shopping trolleys of goods. The queue was ten deep, I have never seen that before there, I wondered how many WHS customers are they grabbing
Is the dollar about to start squeezing their margins?
KMD good acquisition for Briscoes? Nobody seems to want to answer that question
One good thing is that a script issue brings Rods share down to 51% odd.
That and the intent to list on ASX will improve liquidity a lot .....and make Briscoes a more attractive market investment. Also a much bigger company.
Wouldn't want to pay too much more than they already offering though.
Yes, winner, I'm a bit in two minds over that, as well. KMD brings a lot of Aussie exposure with it and NZ companies don't have a good track record there, by and large. WHS, HLG, AIR, Pumpkin Patch - but on the other hand, Rod Duke is a good operator, has a lot of skin in this particular game and is an Aussie! I'll give him the benefit of the doubt at this stage that he'll not overpay and will be prepared to walk away with 19.9%, or a bit more, if the market doesn't like his price.
I was down at the nzopen this year and noticed Rod Duke had Steve Williams caddying for him. While I believe he won a charitable auction for him to have steve on the bag, it also hits me that Rod probably just wanted to get that little bit more from his golf game too and so coughed up a bit of extra cash to have the golfing brain on the bag. He's a competitive guy I'd imagine. good on him. Any holder of Kathmandu who doesn't want Briscoes shares probably needs to go see a doctor of some variety.
This is interesting. I have been a long term investor in BGR, having done well from that investment, and like the way they operate and the strategies they employ. For me a large part of that is Rod and his very clear and direct leadership. KMD on the other hand I have never been so excited about from an investment point of view always seem to struggle really. I can see why BGR think it is a good fit for them though:
1) BGR sells stuff that everyone needs (Is there anyone who has not actually spent money at a Briscoes store?)
2) BGR positions itself as selling stuff that everyone needs but with better quality than the opposition
3) Rebel Sport replicates that position, albeit not quite so universally, in that not everyone buys sporting gear
4) But for those that do the marketing proposition is the same as for Briscoes - a wide range of choice, at a good price/quality point compared with the opposition
KMD is like Rebel, its the place you go to buy outdoor focused stuff at a good price/quality point compared with the opposition. Real enthusiasts don't buy from either KMD or Rebel, they go to specialist retailers for that but I can see that BGR's strategies for getting punters into Rebel will transfer to KMD and likewise with their buying, warehousing and logistics strategies are likely to be complementary.
I can't make the same case for Living & Giving, I have never thought that is a good fit for BGR really.
My concerns would be:
KMD appear to be a large pill for BGR to swallow, just way more stores and geography to cover
NZ Retail companies don't have a great history in expanding outside of NZ
That they have paid too much and cannot get the margin levels that they expect to from the KMD stores
I think that it might be time to consider taking some of my profits off the table, just in case.
BGR expects to announce another good profit increase next month.
http://www.nzherald.co.nz/business/n...ectid=11584101
Despite Kathmandu's improved performance I'm quite happy that BGR didn't manage to get a bigger chunk of that company.
:cool:
Yes a great result. As a SH in www.estaronline.com I was very pleased to see that their client the Briscoe group had grown online sales for the full year to 31st January 2016 by over 40% with Mr Duke expecting this strong online sales growth to continue.
https://www.nzx.com/companies/BGR/announcements/279052
Looks like a great result
I love the way that Rod sees the market
http://www.radionz.co.nz/national/pr...nditions-ahead
He seems comfortable where he is with home wares and sports stuff. Not much threat from big global players
Live his dig at Hallensteins (implied) but bet he hopes Kathmandu not in same boat
Rod duke doesn't see any competitive threat from offshore to the Rebel sports goods business but an article in the AFR this week quoted the CEO of Decathlon, the French based world's biggest sporting goods retailer, announcing its intention to open its first stores in Australia shortly, with the aim of 35-40 stores within 10 years. No mention of NZ there - yet.
http://www.afr.com/real-estate/frenc...0160307-gnd5sp
Economy is well and truly stuffed if you bother read those bank economists reports
But Briscoes sales are booming - up 11% on last year
https://www.nzx.com/companies/BGR/announcements/282091
Only the winners win in tough times
How tough, very tough says Rod but we don't let them get in the way of making more money -
“Our markets continue to be fiercely competitive with on-going economic challenges likely to be faced by ourselves and other importers and retailers from such factors as the depressed dairy sector, and the hedging of foreign exchange exposures at less-favourable rates than in recent years. At Briscoe Group we recognise such challenges and risk exposures and manage them as effectively and prudently as we can.
Stunning announcement today
An economy on fire and Briscoes capitalise on that big time - and on the latest sales data taking share from others
He a guru - that Rod. A man with retail in his blood - no need for a Harvard MBA or that sort of stuff.
Hard to argue against that assessment. Not many have their finger on the pulse as well as Rod. Still, give Xavier some credit Madcuffy, he's only been in the role a year but seems to be doing a good job so far.
I'm not a holder in the stock but boy I love these reports. Rod must be one of the best in the business. Long may it continue. Well done to holders.
Some time ago I read that the most profitable companies are characteristically not the most profit oriented.
The feeling was that great businesses are created by people who love doing business rather than by people who love making money.
That seems to sum up Rod Duke
He pretty amazing that Rod .....and Briscoes
https://www.nzx.com/files/attachments/243876.pdf
Rod Duke, Group Managing Director, said: “We are very pleased to finish this first half with strong growth recorded in sales, gross profit and bottom line profit. To post a record first half profit result representing growth in excess of 30%, despite the ongoing competitiveness of the retail environment and the impact on winter-dependent categories with the late start to the colder months, is a great achievement for the team.
I want some! :t_up:
Wandering around Rebel in Qtown (Frankton) today, was struck by the number of surf casting rods they had there!
not or the place where I would have thought they sold many? Maybe the lake gets a little more rough than I thought, and maybe the fishermen are particularly optimistic......
Normalised npat up 19% for year - another great result for Rod
Q4 sales growth not that high but Rod said taking care of margins was the priority.
No wonder share price up 45% last 52 weeks
He a good guy that Rod.
I'm guessing surf casting rods aren't big sellers in Bolivia Bob? Are you really there? I bet Rod wouldn't stock them if he ran a Rebel sports shop there. Rods for lakes yes but not for the sea. That said try telling the Bolivian military they don't really need a navy...
But more relevantly, if they weren't selling I suspect they would either drop or signifcantly reduce the line in a given shop. Hanging on to product that doesn't sell isn't how he does business from the looks of it.
Yes he really knows how to do retail. When was the last time Briscoes group had a bad quarter or year? I do recall their share price dropping to 67 cents(I think) during the GFC. I didn't think it was due to poor performance, just uncertainty. Anyone that bought then will be very happy :)
Anoher boring record profit from Briscoes.
https://www.nzx.com/companies/BGR/announcements/298240
I hold.
macduffy was being humorous...many comments in this threads history about how dull it is to hold shares in Briscoes when all it does is report growth in sales and profits quarter after quarter, year after year. If we wanted "exciting" we would own Warehouse shares.
I hold.
duke da bomb lol makes warehouse managerment and board look second rate
Apologies for tongue in cheek comment - but then the description of Briscoes' result as "boring" follows a long tradition on this thread of so describing a series of profit increases from this company!
An interesting comment from Rod Duke on NZRadio Business this morning when he replied to a question about the possibility of expansion nto Australia. Something along the lines of "We're still looking; havn't decided anything; one or the other "brands", or both?" The last point is particularly interesting in that Rebel Sport in Aust is a separate outfit from BGR's Rebel Sport in NZ.
http://www.radionz.co.nz/national/pr...-15-march-2017
Interesting noting online sales have increased 40% and now account for 6% of revenue,ie just under $35mil.
Thoughts on why the market has turned sour on this one lately?
Yeah HLG is also getting hammered at the moment. Perhaps some buying opportunities on the horizon.
Retail is currently not flavor of the month. Stock has had a good run up from ~ $3 a year ago and undergoing a correction. No question Rod Duke knows his stuff and this is best of breed but when the tide turns in retail the water level drops everywhere.
Definitely one to watch and most probably worth buying when market sentiment has bottomed out.
I agree with Roger on that. RSI is at its lowest level in about four years so the upturn may not be far off.
BGR is being squeezed by sentiment, not necessarily due to fundamentals of their particular business, Retail as a whole has little to be desired in terms of a moat anymore... NZ is lucky because of the very few stores available to consumers.
household debt has risen to about 170% of nominal disposable income in NZ as well.
Definitely looking to get in once it has bottomed out [ where that will be, no one knows ]
Agreed but the bottom is a long way off.
All retails stocks have been hit hard, both in NZ and AU. Just take a read of yesterdays announcement from ASX:RCG, sums it up pretty well. Along with the Warehouse it's all doom and gloom for retail in 2017.
Quote:
The board believes that RCG has been caught up in the widespread sell down of retail stocks over the last few months due to a number of factors, including declining consumer confidence, subdued wage growth, concerns surrounding the housing market, increasing interest rates and the perceived impact that the market entry of Amazon may have on the Australian retail landscape.
Yes, the market has a bad case of Amazonitis at present where retail stocks are concerned. The good and the bad are both affected but those with good management such as BGR are worth watching for a SP recovery.
To list on ASX ...pretty soon as well
Must have an acquisition of an aussie retailer in mind I reckon
The only stocks up for acquisition are the beaten up ones like Adairs, which come to think of it could fit with the Briscoes stores quite well...
Briscoes is a amazing success story under the leadership of Rod Duke.
Does anyone know what Rod has in mind for his succession plan both for the company leadership and also for his controlling shareholding?
Rod's speech at ASM worth reading
https://www.nzx.com/files/attachments/258625.pdf
Nice touch having their top performing Business Manager address shareholders - wonder what she said.
Another excellent result and not a word from any of you? You peeps hoping for a different result? Declining revenue? Lower profits? Yeah right.
Anyone else looking at this one to invest in? Had dropped close to 30% off its peak and now looks pretty good value to me.
Strong history of growth, well managed, good dividend and nice confidence from Rod on another strong year in his recent quarterly update (albeit lower YOY growth than normal is expected). Foreward PE of around 12 - definitely something I'm considering as a value play.
Rod best retailer in NZ which reflects in BGR long term company performance
Question though - do you see it as a value play just because its 30% of its recent highs?
Share prices driven by sentiment (translated as multiples) and maybe, just maybe, BGP is one of those companies being rerated.
I have held briscoes for a few years now. I see Amazon as an existential threat to Briscoes, more so than any other retailer in NZ, despite Briscoes having a pretty good online platform.
Yet I continue to hold, if you forget about Amazon they appear to be very good value at current prices. Even the KMD attempted aquisition has turned out to be in Briscoes favour.
EstarOnline Ltd is an unlisted public company. http://www.estaronline.com/blog/post...r-dinkum!.html
Investor info: https://www.estaronline.com/About_Us...formation/5883
Rod on radio this morning said Briscoes had their BEST DECEMBER EVER
Might need to come out ith a profit upgrade
4th Quarter Sales due in early Feb. Where did you hear the "Rod" interview winner69?
Liquidity is not going to improve anytime soon if Rod Duke continues to buy. Almost $500,000 in Sep/Oct. With the accumulation of almost $60,000,000 in cash I smell a special dividend in the wind. Particularly if the Amazon threat turns out to be a fizzer. Could we be seeing the beginnings of a delisting in the making. Great for currant shareholders