Dick Smith half yearly sales lower than expected

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Dick Smith half yearly sales lower than expected

Dick Smith's parent company Woolworths Limited has reported 6.2 percent growth in total consumer electronics sales during the first half of the financial year ending 2 January.

Consumer electronics sales in Australia grew 2.3 percent to $726 million, while total New Zealand sales dropped 4.3 percent to $142 million. Woolworths' online sales grew 75 percent, it reported.

Sales growth was strong in India, with the Croma-branded retail shops reporting 42 percent growth.

Company secretary Peter Horton said price deflation, the strong dollar and weak performance of old Dick Smith stores, coupled with its New Zealand performance, resulted in lower than expected earnings before interest and taxes.

Australian Dick Smith shops excluding Tandy and ex-Powerhouse achieved comparable sales of 6.5 percent while it continued it's transition to a “modern outfit".

Woolworths said the new format Dick Smith continued to grow sales at a greater rate than its older Dick Smith format stores. Dick Smith opened 31 shops and refurbished 17 in the first half. 

Woolworths’ first half sales, excluding petrol, grew 3.8 percent to $25.36 billion. Full year net profit after tax guidance was reduced to 5 percent from between 8 percent and 11 percent.

First half financial results to be announced February 25.

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