Dick Smith NZ profit slashed in competitive market
Electronics retailer Dick Smith says a "challenging and competitive" market slashed its New Zealand profit.
The Australian retailer said on Tuesday net profit in New Zealand fell to A$903,000 (NZ$1 million) in the year ended June 28, compared to A$3.2 million last year.
Total revenue from its 62 New Zealand stores fell 7 per cent to A$166 million.
Early in 2014 Dick Smith it closed its Auckland support office. and
In 2012 the retailer's former owner Woolworths shut 100 of the group's 386 stores before it sold the chain to Australian private equity firm Anchorage Capital Partners.
Dick Smith's share price on the Australian Stock Exchange plunged 14.5 per cent on Tuesday, despite it achieving overall growth in sales and profit for the third consecutive year across the group.
Chief executive Nick Abboud said he did not know why the market reacted negatively, particularly after experiencing the fastest growth in its sector in Australia.
Dick Smith opened 25 new stores last year, bringing it to a total of 393 across Australia and New Zealand.
The company's rival JB Hi-Fi also recently reported a growth in total sales for the year but like Dick Smith, its growth was offset by a slump in New Zealand sales.