Woolworths CE Sales Rocket along
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On on a day that Harvey Norman shares rocketed up 6%, Woolworths has announced that it has grown its Consumer Electronics business by 15.5%.

It is the third quarter running that the  Company has reportede double digit growth in this sector.  Comparable sales for the third quarter were 10.2% (Easter adjusted).  Unadjusted for Easter comparable sales were 11.5%.  “Computers, digital cameras, home entertainment categories and associated accessories for these items continued to achieve solid sales growth,” said Alvin Ng, General Manager, Dick Smith Electronics. During the quarter 7 new stores were opened, including 2 stores in New Zealand. 
     
Woolworths overall said its third-quarter sales from continuing operations rose 22.7 percent on a year ago, boosted by its food and liquor acquisitions.A strong performance from its existing operations also increased sales at its food and liquor division, which accounts for about three-quarters of revenues, pushing up the company’s shares by as much as 2.5 percent.

“It wasn’t far below the very strong second quarter, so that’s probably the most pleasing part,” UBS analyst Michael Peet said. “They have continued their strong performance.”

Woolworths’ Australian food and liquor sales from stores open for at least a year rose 3.7 percent, adjusted for Easter falling in the group’s third-quarter last year, and increased an unadjusted 3.1 percent. Comparable New Zealand food and liquor sales grew 3.5 percent, Easter adjusted. Woolworths last year paid about A$2.3 billion (960 million pounds) for the Foodland grocery business, giving it 44 percent of New Zealand’s supermarket sector and adding 20 stores to its Australian business. It also bought the Australian Taverner pubs business as it expands in liquor retailing.

WARM WEATHER

Chief Executive Roger Corbett said Woolworths was performing consistently, although warm weather in New South Wales and Queensland had affected winter clothing sales at the Big W discount variety stores to date this month. “April has been quite a good month. Quite strong. Easter was a little less than I would have liked … mainly affected by weather,” he said.

Corbett said he expected the discretionary general merchandise market to remain constrained, and any moves in petrol prices towards A$1.40 per litre would have a wider impact.