Electronics retailer Dick Smith has beaten its earnings forecast and met its sales target in its first half year result since listing on the share market.
However its comparable store sales fell 1.3 per cent in the six months to December 29, with the company attributing the decline to sales being driven by discounting in the previous corresponding period.
Dick Smith shares dropped 19 cents, or 8.9 per cent, to $1.95.
The company reported earnings of $41.7 million - four per cent ahead of the earnings forecast in its prospectus - and net profit of $25 million for the half year.
Sales for the period were $637 million.
All figures were provided on a pro-forma basis, taking into account changes in the company's structure and its different accounting methods as a Woolworths subsidiary.
Dick Smith was listed in December, a year after a private capital firm bought the underperforming business from Woolworths.
Managing director Nick Abboud said the result was driven by a strong focus on sales, gross margin and cost cutting.
Mr Abboud said the comparable store sales decline was in line with expectations.
He said Dick Smith was placed to deliver on its forecast pro-forma full year forecasts, which includes sales of $1.23 billion and a $40 million net profit.
