Revenue rises, profit falls at Dick Smith

Revenue rises, profit falls at Dick Smith

Dick Smith Electronics (DSE) New Zealand’s solid sales for the 52 weeks to June 2009, along with “buoyant” trading periods last Christmas and back to school, resulted in $361.9 million in revenue, a rise of 6.5 percent year on year.

However, country manager James Cunnold says its reduced year on year gross profit and net surplus are “directly attributable to the competitive trading conditions during the recessionary downturn”.

According to the Companies Office, the local business’ net surplus of $13.9 million was down from $21 million in the 53 weeks to 29 June 2008. Gross profit fell nearly $5 milllion to $88.6 million year on year.

“As with all other retailers the trading environment was difficult, however Dick Smith New Zealand fared well in sales and market share growth over this period,” says Cunnold.

The company was unable to comment on the performance of its local sales for Christmas 2009, as sales results are set to be announced by ultimate parent entity Woolworths in Australia on 27 January.

DSE has 71 stores locally and is going through a programme of refurbishment to reflect the company’s new branding, launched last year.

“We are planning to open a few new stores, however for the next 12 months our focus will be on rebranding and refurbishing our existing store network,” says Cunnold.

A concept store in Auckland’s CBD was the first to undergo the refit, which includes the addition of interactive areas where customers can try products hands-on. Staff at DSE stores are referred to as Techxperts, short for technology experts.

Last year DSE partnered with 2degrees and Dell, and became the first retailer awarded in Microsoft’s New Zealand partner awards, winning the Reseller of the Year award.

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