Dixons Carphone sales rise 6% over Christmas

Joanna Estrada
January 22, 2018

Britain's biggest specialist retailer of electrical good and mobile phones tightened its full-year profit forecast range as a result.

Chief executive Seb James on Monday said that the group's Boxing Day sales had not quite matched "the promise of our very strong Black Friday week" but that he was confident Dixons Carphone had managed to grow market share "in pretty much every category". That compares with a previous forecast of 360-400 million pounds given in December and is a big decline from the 501 million pounds in 2016-17.

"On behalf of the Board and all our colleagues, I would like to thank Seb for all that he has done over the past six years as CEO of first Dixons Retail and now Dixons Carphone". The group's finance director Humphrey Singer is due join Marks & Spencer this year.

"Dixons Carphone has a very strong market position in both the United Kingdom and Northern Europe, and we think its business is likely to prove more resilient than the market expects", said RBC Europe analyst Richard Chamberlain. Baldock is now Group CEO of pure-play online retailer Shop Direct.

Like-for-like sales in the UK & Ireland division rose 3 percent, better than expectations of a 2 percent rise. Current market conditions mean that gross margins continue to be challenged in phone.

Dixons Carphone's Christmas update comes after the retailer's interim results in December revealed tumbling profits, almost halving in the first six-months of its fiscal year.

"For the remainder of this year we have an early Easter, a new Samsung phone and the first week or two of our World Cup promotion to look forward to, and work continues on redefining and refocusing our Carphone Warehouse business to be a simpler, less capital-intensive model".

Commenting on his appointment, James said: "I am very excited to be joining Walgreens Boots Alliance at this time in its history, and to have been offered the privilege of leading Boots, surely one of the UK's most iconic, venerable and trusted brands".

Other reports by Click Lancashire

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