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New stores and layout see Dick Smith sales climb

Julia Talevski (ARN) | Aug. 18, 2015
Investments in new stores, shop formats and trading have had a positive impact on Dick Smith’s 2015 financial results.

Investments in new stores, shop formats and trading have had a positive impact on Dick Smith's 2015 financial results.

The ASX-listed retailer has seen total sales rise 7.5 percent to $1.3 billion for the 2015 financial year ending June 30.

EBITDA was also up 7.3 percent to $79.8 million while net profit rose 3.1 percent to $43.4 million.

Online sales grew to more than eight percent of retail sales thanks to the adoption of Pay and Collect services from all stores and more than 210 stores shipping directly to customers.

The retailer is aiming to have about 10 percent of its overall retail sales derive from online by FY17, which could be achieved when it enables shipping from all of its outlets.

"We are pleased with the Australian sales performance, which was achieved in the face of an increasingly competitive environment that saw more promotional activity than the prior year," Dick Smith managing director and CEO, Nick Abboud, said.

"This reaffirms that the Dick Smith growth strategy is working."

Since embarking on its growth strategy more than two years ago, the retailer has opened 70 new stores including 14 new Dick Smith outlets and six Move stores in FY15 - totaling 393 stores across A/NZ.

Abboud said Move represented a strong growth strategy during the next few years for the retailer.

Dick Smith and Move private label products took about a 12.5 percent share of total sales.

"Consumer demand is driving a 40 percent expansion of our range during FY15. This allowed us to price our branded products more competitively, enabling us to grow our market share," Abboud said.

The retailer anticipates FY16 will deliver a net profit between $45 million to $48 million.

Source: ARN Australia


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