Woolworths has grown their consumer electronics business by 4.2% due in part to new look Dick Smith Stores. The Company who reported a 5.1% lift in profits to $2.12 billion is also benefitting from brands like Apple, Panasonic Sony and Sanyo being sold in their Big W stores.
Woolworths has grown their consumer electronics business by 4.2% due in part to new look Dick Smith Stores. The Company who reported a 5.1% lift in profits to $2.12 billion is also benefitting from brands like Apple, Panasonic Sony and Sanyo being sold in their Big W stores.
The Company said that profitability in the category remained challenging. A move to expand their notebook, tablet, gaming, TV and Smartphone offering including an enhanced range and improved stores was contributing to growth in the IT and consumer Electronics market.
Already a threat to the likes of Harvey Norman and The Good Guys Woolworths is set to become a player in the appliance market when they launch their new Masters chain of stores in Australia.
Luscombe says poor consumer sentiment seen in May and June had continued into the new financial year. “In the absence of a great deal of good news, the outlook is difficult to predict.”
Talking about the Internet Luscombe said that Woollies was immune from the online threat, (rather like the Craig Thomson affair) internet channels are “all about the pros” he said today.
Today’s result is slightly below analysts’ forecasts and is also at the bottom end of Woolworths’ previous forecasts.
Luscombe says it is a sound result given the challenging retail environment that has been dominated by cautious consumers and a spate of natural disasters.
The company is expecting its net profit in the current financial year to rise between 2 and 6 per cent.
Its total dividend payout to shareholders for the year comes to $1.22 – up seven cents on last year’s total dividend.
