Published on January 22nd, 2018 | by The GC Team0
Boxing Day blues for Dixons Carphone as UK&I sales falter
Dixons Carphone today said that Boxing Day sales did not quite mirror the promise of a very strong Black Friday week in its UK & Ireland electricals business, as it issued its Christmas trading statement for the 10 weeks ended 6 January 2018.
Like-for-like revenue in electricals improved by approximately 1% as a result of sales successfully transferred from closed stores. Gross margin in the region fell, mainly due to mobile, while in electricals certain increased costs in margin were due to channel mix.
Seb James, Group Chief Executive, whose resignation was announced by the business on Friday 19th January, said “we are very confident that we grew market share in pretty much every category,” noting particularly strong sales in Large-Screen TVs, Gaming, Smart Tech, and SIM-free phones.
Group like-for-like revenue rose 6%, against strong comparables last year, with strong sales in Greece and the Nordics, where like-for-like revenues rose by 23% and 11% respectively.
Group like-for-like revenue in the UK & Ireland in a “more cautious consumer environment” grew by 3%.
The UK mobile business reported a strong sales period, helped by better iPhone X availability and a growing share in SIM-free and SIM-only. But James commented that current market conditions mean that gross margins continue to be challenged in the phone business.
Work continues on redefining and refocusing the Carphone Warehouse business to be a simpler, less capital-intensive model.
The Group expects to deliver a full-year PBT in the range £365m to £385m (previously £360m to £400m) and, with rather better cash conversion this year, it expects year-end net debt to be c.£250m.