Latest news with #RodDuke
1News
2 hours ago
- Business
- 1News
What is going on with Briscoes shares?
Briscoes shares have had a boost in recent days, ahead of the company moving into the top 50 stocks on the NZX share market tomorrow. Falling share prices pushed The Warehouse out of the NZX50, and Briscoes will take its place. That means that passive managed funds that benchmark their funds to the NZX50 will snap up stocks in the company too. Its share price has lifted from less than $5 at the start of the month to $6.19 on Thursday. Greg Smith, head of retail at Devon Funds, said there had been a lot of pre-buying ahead of Briscoes moving up on Monday morning. He said that meant the bump in share price was unlikely to be so significant. ADVERTISEMENT "Going into the 50 means it is a lot more relevant to institutional managers although with Rod Duke owning nearly 80% of the stock, getting liquidity will be an issue." Greg Bunkall, data director at Morningstar, said the number of passive funds benchmarked to the NZX50 would not be large. "Maybe 10 or so share classes, both traditional managed funds and ETFs. "There may also be some of the ESG tilted options, which, depending on the screen might be impacted - then there is also the multi asset funds which have the index fund as a part of the overall portfolio." 'Self-cleansing mechanism' Dean Anderson, founder of Kernel KiwiSaver, said it was relatively unusual for stocks to move in and out of the top 50. "Every quarter, major benchmarks like the S&P/NZX 50 undergo a rebalance, testing each company's eligibility for the index and where underperforming companies can be dropped and stronger ones added. ADVERTISEMENT "This self-cleansing mechanism ensures indices stay relevant-poor performers are replaced by those that have grown in value, often overtaking the bottom-ranked company in the index. "In a small market like New Zealand, though, such changes are rare, often one or two changes in a year, making them all the more noteworthy when they happen, with the last change to the S&P/NZX 50 index rebalance occurred in December 2023." He said the Briscoes share price had already lifted 28% since it was announced it was going into the top 50. Some investors had sold shares in The Warehouse. "Globally, this isn't unusual. Studies show that stocks added to major indices like the S&P 500 often see short-term price spikes of 3% to 8% in the days leading up to inclusion, driven by speculative buying and index fund rebalancing. "However, the scale in these spikes is falling and these gains frequently fade within weeks as the initial hype subsides - which can leave some speculative investors out of pocket." He said some active manager might be trying to game the rebalance by betting on short term movements but the risks could outweigh the rewards. Sam Stubbs, founder of Simplicity KiwiSaver, said his funds were benchmarked against the top 30. He said beyond the top 30, it could be hard to buy and sell shares. He said Briscoes' presence in the index was likely to be weighted so that only 20% of the company's value was reflected because of Duke's significant holding.
RNZ News
11 hours ago
- Business
- RNZ News
What's going on with Briscoes shares?
Photo: RNZ / Simon Rogers Briscoes shares have had a boost in recent days, ahead of the company moving into the top 50 stocks on the NZX share market on Monday. Falling share prices pushed The Warehouse out of the NZX50, and Briscoes will take its place. That means that passive managed funds that benchmark their funds to the NZX50 will snap up stocks in the company too. Its share price has lifted from less than $5 at the start of the month to $6.19 on Thursday. Greg Smith, head of retail at Devon Funds, said there had been a lot of pre-buying ahead of Briscoes moving up on Monday morning. He said that meant the bump in share price was unlikely to be so significant. "Going into the 50 means it is a lot more relevant to institutional managers although with Rod Duke owning nearly 80 percent of the stock, getting liquidity will be an issue." Greg Bunkall, data director at Morningstar, said the number of passive funds benchmarked to the NZX50 would not be large. "Maybe 10 or so share classes, both traditional managed funds and ETFs. There may also be some of the ESG tilted options which depending on the screen might be impacted - then there is also the multi asset funds which have the index fund as a part of the overall portfolio." Dean Anderson, founder of Kernel KiwiSaver, said it was relatively unusual for stocks to move in and out of the top 50. "Every quarter, major benchmarks like the S&P/NZX 50 undergo a rebalance, testing each company's eligibility for the index and where underperforming companies can be dropped and stronger ones added. "This self-cleansing mechanism ensures indices stay relevant-poor performers are replaced by those that have grown in value, often overtaking the bottom-ranked company in the index. "In a small market like New Zealand, though, such changes are rare, often one or two changes in a year, making them all the more noteworthy when they happen, with the last change to the S&P/NZX 50 index rebalance occurred in December 2023." He said the Briscoes share price had already lifted 28 percent since it was announced it was going into the top 50. Some investors had sold shares in The Warehouse. "Globally, this isn't unusual. Studies show that stocks added to major indices like the S&P 500 often see short-term price spikes of 3 percent to 8 percent in the days leading up to inclusion, driven by speculative buying and index fund rebalancing. "However, the scale in these spikes is falling and these gains frequently fade within weeks as the initial hype subsides - which can leave some speculative investors out of pocket." He said some active manager might be trying to game the rebalance by betting on short term movements but the risks could outweigh the rewards. Sam Stubbs, founder of Simplicity KiwiSaver, said his funds were benchmarked against the top 30. He said beyond the top 30, it could be hard to buy and sell shares. He said Briscoes' presence in the index was likely to be weighted so that only 20 percent of the company's value was reflected because of Duke's significant holding. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
07-05-2025
- Business
- Scoop
Briscoe 1st Quarter Sales
Press Release – Briscoes Despite the slower start to the winter season, inventory continues to be well controlled and finished the quarter lower across both segments when compared to the prior year. 1st Quarter Sales to 27 April 2025 The directors of Briscoe Group Limited (NZX/ASX code: BGP) announce that unaudited sales for the first trading quarter ended 27 April 2025 (91 days) were $178.3 million, being 2.58% lower than the $183.0 million achieved for the same quarter of last year. First quarter sales for the Group's homeware segment decreased by 4.66% to $103.6 million, while sporting goods sales increased by 0.47% to $74.7 million. Group Managing Director Rod Duke said, 'This first quarter has proved difficult as we continue to trade within a struggling retail environment. While we're disappointed not to have matched last year's Group first quarter sales, the closeness in timing of Easter and ANZAC Day wasn't ideal for maximising promotional activity and the warmer temperatures compared to last year also impacted sales of heating products. We estimate the negative impact on Briscoes Homeware in relation to heating related products to be more than $2 million compared to last year. 'For Rebel Sport to achieve sales growth is very pleasing with solid sales across most areas but particularly in the categories of women's apparel, supporters clothing and sporting equipment. 'As expected, margins remain under pressure, however after a challenging start to the year, we have seen recent recovery in gross profit margin. 'Despite the slower start to the winter season, inventory continues to be well controlled and finished the quarter lower across both segments when compared to the prior year. 'We anticipate New Zealand retail to remain highly challenging throughout the remainder of 2025 and as previously highlighted, continue to look to protect the level of profitability achieved last year. We are currently targeting first half net profit after tax (NPAT) of around $30 million and expect the Group to return to a more normalised profit shape for the full year with second half profit exceeding that achieved for the first half.'
Scoop
07-05-2025
- Business
- Scoop
Briscoe 1st Quarter Sales
1st Quarter Sales to 27 April 2025 The directors of Briscoe Group Limited (NZX/ASX code: BGP) announce that unaudited sales for the first trading quarter ended 27 April 2025 (91 days) were $178.3 million, being 2.58% lower than the $183.0 million achieved for the same quarter of last year. First quarter sales for the Group's homeware segment decreased by 4.66% to $103.6 million, while sporting goods sales increased by 0.47% to $74.7 million. Group Managing Director Rod Duke said, 'This first quarter has proved difficult as we continue to trade within a struggling retail environment. While we're disappointed not to have matched last year's Group first quarter sales, the closeness in timing of Easter and ANZAC Day wasn't ideal for maximising promotional activity and the warmer temperatures compared to last year also impacted sales of heating products. We estimate the negative impact on Briscoes Homeware in relation to heating related products to be more than $2 million compared to last year. 'For Rebel Sport to achieve sales growth is very pleasing with solid sales across most areas but particularly in the categories of women's apparel, supporters clothing and sporting equipment. 'As expected, margins remain under pressure, however after a challenging start to the year, we have seen recent recovery in gross profit margin. 'Despite the slower start to the winter season, inventory continues to be well controlled and finished the quarter lower across both segments when compared to the prior year. 'We anticipate New Zealand retail to remain highly challenging throughout the remainder of 2025 and as previously highlighted, continue to look to protect the level of profitability achieved last year. We are currently targeting first half net profit after tax (NPAT) of around $30 million and expect the Group to return to a more normalised profit shape for the full year with second half profit exceeding that achieved for the first half.'
RNZ News
06-05-2025
- Business
- RNZ News
Briscoe Group's first quarter sales down on last year
Briscoes and Rebel Sport Photo: Hazel Redmond Photographer Briscoe Group's first quarter sales are down on last year reflecting a struggling retail sector. Sales for the first 91 days of the financial year ended April fell 2.6 percent to $178.3 million, compared with $183m the year earlier. Sales were dragged down by a near 5 percent drop in homewares sales, while Rebel Sport sales were slightly up. Group managing director Rod Duke said Easter and Anzac Day closures added to the difficult period, while warmer than usual weather impacted promotional sales of heating products. "We estimate the negative impact on Briscoes Homeware in relation to heating related products to be more than $2m compared to last year," Duke said. "For Rebel Sport to achieve sales growth is very pleasing with solid sales across most areas but particularly in the categories of women's apparel, supporters clothing and sporting equipment. "As expected, margins remain under pressure, however after a challenging start to the year, we have seen recent recovery in gross profit margin." He said inventory continued to be well controlled for both market segments. "We anticipate New Zealand retail to remain highly challenging throughout the remainder of 2025 and as previously highlighted, continue to look to protect the level of profitability achieved last year." The company expected first half net profit to be about $30m million with second half profit exceeding that achieved in the first half.
