Sharechat Logo

Smiths City posts 2.6 percent gain in 1H profit in difficult trading conditions

Thursday 20th December 2012

Text too small?

Smiths City Group, the Christchurch-based department store operator, posted a 2.6 percent gain in first-half profit saying retail conditions are difficult, especially for consumer electronics.

Profit was $1.69 million in the six months ended Oct. 31, from $1.64 million a year earlier, the company said in a statement. Sales fell 0.2 percent to $109.7 million.

Trading conditions "have been difficult," said chairman Craig Boyce. "Household spending is restrained, appliance prices have fallen leading to lower dollar margins, competitor activity aggressive and business expenses, particularly occupancy and insurances expenses, have risen considerably."

The shares rose 3.7 percent to 56 cents and are up 23 percent this year. The retailer will pay an interim dividend of 1 cent a share, unchanged from a year earlier.

Smiths City has agreed to a banking facility with a major lender and will terminate its relationship with its existing financier in January 2014. The change will result in significant savings in interest costs, it said, without identifying the lenders involved.

The company focussed on sales of its most profitable lines, furniture and bedding, in the first half while re-opening stores shuttered by the Canterbury earthquakes.

It doesn't expect improvement in retail conditions any time soon, it said.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

UPDATE: Mercury earnings fall less than expected on geothermal offset
Napier Port jumps 12% on NZX debut following oversubscribed public offer
Moody's sees pressure on NZ banks' profitability
Competition watchdog proposes breaking wholesale stranglehold on petrol supply
FIRST CUT: Mercury earnings fall less than expected on geothermal offset
Comvita says KPMG's audit delays reporting of annual results
20th August 2019 Morning Report
NZ dollar drifts lower as greenback gains; focus on Jackson Hole
Nib NZ has risk and culture review on the radar
MARKET CLOSE: NZ shares gain as tweaked earnings outlooks boost A2, weigh on Fletcher

IRG See IRG research reports