Dick Smith shares take a dive
Business
Shares in Dick Smith have tumbled after the electronics retailer downgraded its full year profit guidance in the wake of disappointing October sales.
The company expects full year net profit for fiscal 2016 to be $5 million to $8 million lower than the previous guidance of $45 million to $48 million.
Shares in Dick Smith fell nearly 30 per cent, or 37 cents, to 90 cents at 1037 AEDT.
October sales were disappointing with growth well below the level achieved in the first quarter of fiscal 2016 despite heightened promotional activity, a company statement says.
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“Given the October performance and expectations of challenging and variable market conditions, we are cautious about the outlook for the all important Christmas trading period,” Dick Smith chief executive Nick Abboud said.
“We will continue to drive sales growth and protect market share, including launching the Dick Smith Live Daily Deals campaign on television and radio this week to drive customers to our stores.”
Sales growth for the first quarter was up 6.9 per cent with comparable sales up 1.3 per cent from a year ago.
Mr Abboud said the improved sales result for the quarter was achieved in a challenging and competitive environment in Australia and New Zealand.
– AAP
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