Finance Finance News Dick Smith sales up 1%

Dick Smith sales up 1%

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Electronics retailer Dick Smith has recorded a slight lift in group third quarter sales, as growth in its Australian operations offset a decline in its New Zealand business.

Dick Smith recorded group like-for-like sales of $280 million for the three months to March 30, up one per cent from a year ago, although sales were down 2.7 per cent for the year to date.

The result was down 1.8 per cent in constant currency terms.

The retailer’s Australian operations recorded like-for-like sales growth of 2.4 per cent to $238.4 million for the quarter.

But sales were down 5.6 per cent for the New Zealand business at $41.7 million, a result that benefited from the rise in the NZ dollar. Excluding currency movements, sales in New Zealand were down 18.8 per cent at $NZ44.9 million. However, the result was an improvement on the second quarter.

Chief executive Nick Abboud said the decline in sales was smaller than recorded in late 2013 and the company was working to turn around the New Zealand business, including integrating its marketing and buying division with its Australian operations.

“The early benefits to our New Zealand business from the February transformation are in line with our expectations,” he said.

“We anticipate further improvements, particularly in sales, from stronger consumer offers and value perception available by leveraging our Australian buying power.”

The company plans to open six new Dick Smith stores by June.