Dick Smith makes $8.9m loss

CLAIRE ROGERS
Last updated 11:30 23/11/2012

Relevant offers

Business

Bank dampens talk of 6pc growth New Bank of New Zealand CE bullish over growth Dick Smith online sales up 47 per cent Slow rebuild impacts SI growth Wife gets $900k from mansion sale English upbeat despite 'average' proceeds Rents likely to keep rising Rethinking the numbers Liquidator 'breached fundamental principles' NZ 'falling behind on R&D'

Electronics retailer Dick Smith has plunged into the red, making a loss of $8.9 million for the year ending June 24.

The company has suffered a series of profit declines in recent years, with the electronics sector struggling under fierce competition, including from online retailing, and huge price reductions for products, particularly in flat-screen TVs.

Its plunge from a $3.6m profit in the 2011 financial year to last year's $8.9m was despite a modest increase in revenue, up three per cent to $331.3m, according to Companies Office records.

Cost of sales rose six per cent to $255.1m, while branch expenses shot up 32 per cent to $63.5m.

Dick Smith has 61 stores in New Zealand and about 765 staff.

It was bought by private equity group Anchorage Capital Partners from Woolworths for A$20m in September. Anchorage has promised to maintain the retailer's Australasian network of 325 stores.

Ad Feedback

- © Fairfax NZ News

Special offers

Featured Promotions

Sponsored Content