Electronics retailer Dick Smith (DSH) says it is on track to lift first half sales by about 10%, thanks to new store openings and solid sales of some new products.
The retailer told an investment conference yesterday that it expects to record “low double-digit or high single-digit sales growth” for the first half of the 2014-15 financial year.
Like-for-like sales, which exclude the impact of new store openings and closures, are expected to rise between by a more modest 1.5% to 2%, which is OK, but hardly gangbuster growth.
Total sales were up 10.1% for the first 15 weeks of the year, while like-for-like sales were up 1.7%.
Dick Smith said sales of Apple products had been particularly strong, while online sales were also growing "exceptionally well".
DSH YTD – Dick Smith upbeat
The retailer wants to open 20 stores a year across Australia and New Zealand over the next three years, with a target of 450 stores by 2017.
Meanwhile, it expects to benefit from the recent drop in the Australian dollar, which will help drive "modest inflation" – meaning higher prices for consumers.
The Australian dollar is currently trading around 85 USc, down by about 10c from a year ago. Dick Smith put its forecast for the dollar in a range of 80c to 90c – it was around 85c yesterday.
Dick Smith listed on the ASX almost a year ago in December and announced a maiden annual net profit of just over $42 million in August.
Dick Smith shares rose 0.9% to $2.26.
