Furniture chain sales rise

Last updated 05:00 27/08/2014

Relevant offers

Industries

Wind not wanted for Bluff wind farm - yet Sixth consecutive drop at Fonterra's GlobalDairyTrade auction Environment Canterbury's draft Lyttelton Port Recovery Plan scrutinised Rail and Maritime Transport Union takes KiwiRail to court Z Energy shares rocket up 21 per cent on $785m Caltex takeover deal Kiwi falls against US dollar ahead of Reserve Bank interest rate review Spark share buy-back announced More than 50 jobs to go at Ministry of Business, Innovation and Employment Spark 4G rural broadband service on way This is the cheapest broadband will get in New Zealand

Retail chain Smiths City Group says sales for the first three months of the financial year have been flat.

While trading profit was up for the financial year to April, the company's sales for the first quarter of the current financial year had been below expectations, managing director Ric Hellings told the company's annual meeting in Christchurch yesterday.

"It was really a case of the good and the mildly disappointing, in fairness," he said.

"We had thought we could see some growth."

The good news for the company was a 44 per cent increase in profit from ongoing operations in the past financial year.

Overall profit was down 24 per cent, from $5.4 million to $4.1m.

The company's trading profit was up 44 per cent, from $3.8m to $5.5m.

The "highly competitive" consumer electronics market was still challenging, Hellings said, and "we're not really seeing that change".

Improvement on profitability came through Smithcorp, Smiths City's in-house finance company, and a boosted performance from the lower North Island.

Hellings said Smithcorp was "a standout performer" after the company took advantage of lower refinancing costs with ANZ in April last year.

"This shows . . . whilst retail performance undoubtedly underpins the organisation, profits can still be made even when retail sales performance is flat," he said.

Sales in Canterbury had taken a hit, with most competitor stores having been reopened for all of 2013.

Ad Feedback

- The Press

Special offers

Featured Promotions

Sponsored Content