Dick Smith Up 1%, Admits "Challenging" Market

Written by Oonagh Reidy     24/04/2014 | 13:33 | Category: INDUSTRY

Q3 sales hit A$280.1m, new stores planned

Dick Smith Up 1%, Admits

Dick Smith growth slowing as total Q3 sales hit A$280.1 million for FY14, according to its latest market update.

Like-for-like sales across Dick Smith's ANZ operation rose just 1%. 

However, Australian LFL sales rose higher at 2.4% despite "challenging market conditions", the retailer who recently went public, said.

"This grow this consistent with our expectations and we anticipate it will continue into Q4 FY14 in the region of 3% consistent with our Prospectus proforma sales forecast," according to CEO Nick Abboud.

New Zealand comparable sales fell 5.6% but that region's transformation is said to be "progressing well."

Online sales grew 47% in Q3 FY14 and now accounts for around 4% of total sales.

Abboud said "Dick Smith's continued focus on its core growth strategies, including new stores, omni channel,private label and accessories, has enabled the business to achieve sales growth in the quarter."
   
The retailer has also benefited with its hook up with David Jones, with strong sales growth in David Jones Electronics Powered by Dick Smith stores. 

"We anticipate opening 6 new Dick Smith stores in A grade locations in Q4 FY14, and with one closure, three more Move stores and a David Jones Electronics Powered by Dick Smith store." 

377 stores are expected to be operating by June.  

Dick Smith Board reaffirmed its FY14 prospectus forecast, provided there is no change in consumer or market conditions.