2nd Quarter Sales to 26 July 2026

Sales Resilience Through 2
nd
Quarter


• Third consecutive quarter of positive growth
• 2
nd
Quarter Group Sales $193.4 million, +0.25%
• 1
st
Half Group Sales $374.2 million, +0.79%
• 1
st
Half Group Online Sales Growth, +2.07%, +$1.5 million
• 1
st
Half Online Sales Mix 19.60% vs 19.36% Last Year
• New rewards system launched for Rebel Sport Club
• Reported Net Profit after Tax (NPAT) expected to be not less than $27 million

The directors of Briscoe Group Limited (NZX/ASX code: BGP) announce unaudited
sales for the 13-week second quarter ended 26 July 2026 of $193.4 million, an increase
of 0.25% on the $192.9 million reported for the same period ended 27 July 2025.

Group sales for the first half, comprising the 26-week period ended 26 July 2026, were
$374.2 million, an increase of 0.79% on the $371.3 million reported for the
corresponding period last year.

Group Managing Director Rod Duke said, “We’re pleased to report a third consecutive
quarter of positive sales growth despite economic conditions remaining challenging and
consumer confidence continuing to recover only gradually.

“Sporting goods delivered a pleasing result, increasing 4.84% for the quarter. Sales
benefited from strong customer engagement generated by a number of significant
sporting events and successes during the period. The FIFA World Cup, Auckland FC's
A-League triumph, the Warriors' strong NRL campaign and the All Blacks' successful
home programme in the Nations Championship all helped generate excitement and a
stronger connection with sport among New Zealand consumers. Homewares sales were
below last year, declining 2.17%, reflecting lower-than-expected demand for heating
products due to a milder start to winter, weaker luggage sales as geopolitical tensions
affected travel activity, and ongoing pressure on discretionary consumer spending in
general. Across the first half, Group sales increased 0.79%, with sporting goods
increasing 2.56% and homewares decreasing 0.30%.

“Our online business continues to perform well with Group online sales increasing
2.07%, representing first-half growth of $1.5 million. Online sales represented 19.60% of
total Group sales compared to 19.36% last year.

“During the half we also launched the next iteration of our Rebel Club loyalty scheme,
introducing a new rewards system to drive frequency and transaction value, deepen
customer engagement and improve personalisation.

“Gross profit percentage is expected to show further progress against the rate of decline
experienced during last year. Group gross profit percentage for the first half is currently
expected to be around 57 basis points below the prior corresponding period, a material
improvement on the 115 basis point decline reported for the full year last year. This is
especially encouraging given that we estimate the weaker New Zealand dollar diluted
margin by around 30 basis points. This improvement reflects the benefit of initiatives im-
plemented over the past eighteen months, although retail conditions remain highly pro-
motional and consumers continue to be very responsive to price and promotional activi-
ty. Ongoing geopolitical tensions in the Middle East have added to cost pressures and
broader economic uncertainty. Preserving sales momentum while rebuilding gross profit
percentage remains a delicate balance and continues to require careful judgement from
our merchandise and marketing teams.

“Inventory also remains well controlled, with half-year inventory expected to be
approximately $1 million below last year

“Profitability for the first half will also reflect several anticipated items. These include net
interest income expected to be approximately $1.9 million lower than last year, around
$1.8 million of additional operating costs associated with the new distribution centre and
approximately $0.9 million of one-off expenditure in relation to SAP S/4HANA
implementation. These amounts are before tax.

“These costs will be partly offset by an expected net lease accounting benefit of
approximately $2.0 million before tax associated with the early surrender of the previous
distribution centre lease, after taking into account all lease-related costs arising from the
transition to the new facility.

“Importantly, these costs represent an investment in the Group’s future operating
capability. The substantial inventory, productivity, service and efficiency benefits
expected from the distribution centre project will begin to emerge this year now that
operational throughput levels are exceeding those in comparison to the previous
distribution centre. More significant benefits will be progressively realised next year as
automation is fully commissioned and optimised by the end of this financial year.

“Although economic conditions remain difficult and recovery continues to be slower than
anticipated, we are encouraged by the sales resilience achieved during the first half.
With the new distribution centre now operational, Rebel Club launched, and SAP
S/4HANA progressing, we continue to invest for the long term. The additional
operational costs from the new distribution centre and SAP project costs account for the
difference in profit shortfall when compared to last year’s first half.

Briscoe Group Limited is a company incorporated in New Zealand and registered in Australia as a foreign company under the name
Briscoe Group Australasia Limited (ARBN 619 060 552). It is listed on the NZX and also the Australian Securities Exchange as a
foreign exempt entity. (NZX/ASX code: BGP).



“Based on trading to date and subject to completion of normal half-year closing
processes, the Group currently expects reported net profit after tax for the six months
ending 26 July 2026 to close at not less than $27 million.

“The Board remains confident in the Group’s strategic direction, financial position and
long-term growth opportunities.”

Briscoe Group expects to release its half-year results on 16 September 2026, including
declaration of an interim dividend.

Monday 3 August 2026.

Contact for enquiries:
Rod Duke
Group Managing Director
Tel: +64 9 815 3737