Tuesday, October 27, 2009

Fantastic Furniture sales up slightly

http://www.news.com.au/business/story/0,27753,26271325-31037,00.html

FURNITURE retailer Fantastic Holdings says its September quarter results are strong and the retail outlook for Australia is promising.

Fantastic said the group's like for like delivered sales have increased four per cent in September compared with the corresponding period to September 2008, while total sales rose 15 per cent.

Chairman George Bennett also reiterated recent guidance that pre tax net profit for the six months to December 2009 would rise between 65 to 75 per cent compared to $10.6 million in the prior corresponding period.

"We do not expect gains of this magnitude for the full year however, as the performance in the second six months of the 2009 financial year was much stronger than the first half," Mr Bennett said.

Managing director Julian Tertini said the retail outlook in Australia was "promising'' but warned there could be challenges ahead.

"With the winding down of government stimulus to consumers and the expectation of rising interest rates, there will be further challenges in the 2010 financial year," Mr Tertini said.

"However, if consumer sentiment continues to improve, optimism remains in financial markets, employment stays at reasonable levels and demand for housing remains strong, these factors will provide the Fantastic Holdings Group with significant opportunities to grow our customer base and achieve better economies of scale."

Fantastic in August 2009 posted a 32 per cent increase in annual sales to $402 million, compared to the prior financial year, and a flat net profit of $18.6 million.

Mr Tertini said in August that the result was boosted by improving consumer sentiment and contributions from the acquisitions of Le Cornu and Dare Gallery, and Fantastic's entry into Western Australia.


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