Electronics retailer, Dick Smith, has flagged a 10 per cent rise in full year sales after a flat first half pro-forma profit.

Despite the positive outlook, Dick Smith’s New Zealand stores were challenged by tough retail conditions and increased competition, with local comparable sales in NZ dollar terms dropping 12.7 per cent to $96.7 million.

CEO, Nick Abboud, said he expects the challenging conditions to continue into the second half.

NZ’s gross margin was 23.4 per cent.

Dick Smith’s Move wearable fashion brand is set to debut in NZ with its first store in the first half of 2015.

Overall net profit was A$25.2 million in the 26 weeks to December 28, compared to a A$4.9 million loss in 2013, however, the result was flat when compared to its pro-forma result of $25 million for the previous corresponding period.

Revenue rose nine per cent to $693.8 million, aided by 11 new store openings and strong sales growth. There are a total of 400 Dick Smith stores.

Online sales make up seven per cent of total sales, while private label products account for 12 per cent.

Nine new stores will open in the second half.