Smiths City Group, the Christchurch-based department store operator, has posted a 2.6% 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 statemen yesterday. Sales fell 0.2% 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% to 56 cents and are up 23% 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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- “An RBA interest rate cut is pretty much a done deal,” says Capital Economic's Paul Dales
- Japan’s Prime Minister Shinzō Abe opens the floodgates to more stimulus, join NBR's Jason Walls as he explains why
- Despite a few howls of protest, land economics expert Adam Thompson says the Auckland Unitary Plan is positive
- Hamish McNicol discusses the Serious Fraud Office’s warning to companies about employee fraud
- The reviled Taniwha Tax has been dropped from Auckland's Unitary Plan. Taxpayers' Union's Jordan Williams says it's a major coup