Dick Smith sales are up 2.3% as Woolies get set to ditch the chain.
Sales in Dick’s Aussie operation rose 2.1% to $1.3bn for FY2012 to 24 June, as Woolworths released its end of year results today.
Total sales across its Aus. and New Zealand stores were $1.5bn – up 2.3%.
The electronic retailer’s earnings (before restructuring costs) also soared almost 12% to $24.6bn, due to the success of its cost cutting program.
Dick Smith is now classed as a “discontinued operation” and so sales were not included in Woolies’ total net profit (after tax) figure from continuing operations, up 3.6% to $2.1 billion.
The sale of the CE chain is still underway, and a restructuring loss of $420m ($300m of which was raised in HY12) was included in today’s result, Woolies said in a statement.
Comparable sales rose 4.3%, attributed to strong promotions including ‘Dick Does’ and ‘Cheapest Ever,’ and store closures in Q4.
52 underperforming Dick Smith stores were shut during the 2012 financial year, bringing the total number across ANZ to 348. There were also an additional 22 stores shut in July last.
Woolies’ overall sales across all food, liquor and petrol divisions was $55.1bn, up 4.8%, with the retail giant making gains in customer numbers, market share and number of products sold.
Net profit from continuing ops was up 3.6% to $2.18bn. NPAT fell 14.5% to $1,8bn after the provision for the divestment of Dick Smith was taken into account.
Woolies CEO Grant O’Brien said the NPAT result was “solid” considering the tough retail conditions of late.
“Despite some of the toughest retail conditions in recent times we have delivered value to customers through lower prices and value to shareholders through solid “returns within guidance,” O’Brien, said.
“The sales result reflects a stronger end to the year which has continued into the start of the 2013 financial year.”
But it looks like the depressed retail environment of late may be on the up as Woolies sales for H2 showed an almost 3% improvement.
On the Big W front, sales grew slightly 0.5% to $4.1bn for FY12, although comparable sales fell 1.5%.
Earnings for the discount store and one of the biggest resellers of Apple products earnings rose 0.8% to $1.78 bn.
Comparable sales rose 0.3% which was “pleasing given the continuing price deflation and challenging retail conditions.” Gross margin increased 109bps to 31.72 – bucking the downward trend felt among major retailers.
Big W is also making “good progress” in meeting the changing needs of customers and realising its ambition to be “Australia leading multi option retailer.”
“The sales result reflects a stronger end to the year which has continued into the start of the 2013 financial year,” Woolies boss concluded.
The Board announced a 3.3% increase in dividends per share to 126 cents for the 2012 financial year, up from 122 cents last year.
Woolworths’ share price fell -1.66% to $29, after the results were announced.