Wellington, Aug 6 NZPA - Briscoe Group Ltd recorded a half year sales increase of 2.61 percent, though overall profit is expected to be flat.

The homeware and sporting goods retailer today announced unaudited sales for the half year ending August 1 to be $190m, compared to $185.3m for the same time last year. Homeware numbers were up 1.73 percent, while sporting goods sales were up 4.47 percent.

On a same store basis, overall sales were up 2.49 percent.

But for the second quarter period (the 13 weeks ending August 1), Briscoe said sales were $93.3m, 1.93 percent lower than the $95.1m reported for the same quarter last year.

Homeware numbers decreased by 3.64 percent to $64.9m, while sporting goods sales increased by 2.22 percent to $28.4m.

On the same store basis, overall sales were 1.96 percent lower than the second quarter last year, with homeware going down 3.69 percent and sporting goods going up 2.22 percent.

Group managing director Rod Duke said pressure on sales intensified during the second quarter, reflecting the impact of the unusually mild temperatures experienced in April and May.

He said despite the tough operating conditions, earnings before interest and tax (ebit) has increased, and the companyexpected half year results to show its ebit 30 percent ahead of last year's.

"We're pleased with this interim result given the current retail environment. Sales and gross profit will be up on last year and costs have been well managed during this first six months. Gross margin percent will be slightly lower than for last year," Mr Duke said.

"After taking to account a tax adjustment of approximately $2.6 million that we are required to book under New Zealand Equivalent to International Accounting Standard 12 as a result of the recent tax changes announced by the government, the group's net profit after tax for the half year is anticipated to be similar to the $6.5 million reported for the same period last year."

Briscoe's shares last traded at 120.