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Published on June 3rd, 2015 | by The GC Team

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Dixons Carphone raises guidance on strong Q4 sales

Dixons Carphone today said its pretax profit is expected to exceed the top end of expectations after Group like-for-like sales increased 9% in the fourth quarter.

Revenues in the UK & Ireland rose 13% in the quarter, while sales in the Nordics and Southern Europe increased 1% and 8% respectively.

As a result the company said Group pro forma headline profit before tax is expected to be slightly above the top end of the previously guided range of £355 million to £375 million.

Further market share gains were made across electricals and mobile in the UK & Ireland, Nordics and Greece.

Group Chief Executive Sebastian James said: “Nearly a year into our merger, I am very pleased to be posting such a strong first full year trading statement for our combined Dixons Carphone Group.

“Good trading, driven by market share gain and by strong promotional periods, including Easter, coupled with successfully streamlining the Group’s international assets, means that we are now guiding PBT to be slightly above the top end of our previously disclosed range for the full year.”

In the UK & Ireland both electricals and mobile were said to have traded strongly and have gained market share. The CPW stores within a store continue to perform well, the company said, and there are now 233 open within CurrysPCWorld stores.

In the Nordics, market share gains were made in all key markets, although Q4 like-for-like revenue growth was slower than previous quarters due to the impact of the weaker oil price on the Norwegian economy and its currency, as well as a softer consumer backdrop in Finland.

In Southern Europe, Q4 like-for-like revenue growth of 8% reflected a significant improvement on the Christmas quarter, driven by a strong like-for-like performance in Greece, despite the political backdrop.

In the UK, Ireland and Sweden, Dixons Carphone will by autumn this year have moved its head offices, begun moving its logistics and repair centres, built integrated management teams and opened almost 280 new mobile stores.

James added: “It is a truism that the time to fix the roof is when the sun is shining, and we will pursue continued investment in the business this year to do just that.

“We are making excellent progress but there is still much to do and many areas of the business that we want to improve further. Delivery options, IT investment, extending our free warranty programme, further training for our colleagues, Norwegian pricing and others are in our sights to make us stronger in the long term.”

 

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