Mixed fortunes for Dixons Carphone over Christmas

Marco Green
January 21, 2020

The group said it was on track to meet its targets, with no change to the financial guidance given at its interim results in December.

A recent rally at electrical goods-to-mobile phones seller Dixons Carphone (DC.) continued on Tuesday, the shares sparking up 4.1% to 148.28p on news of a strong Christmas performance in terms of "sales, market share and customer satisfaction".

In terms of the festive performance, Dixons Carphone reported 2% like-for-like sales growth in the United Kingdom and Ireland electricals business over the 10 weeks ended 4 January.

The group's global business - the Nordics and Greece - saw like-for-like sales rise 3%. The firm said it won share in a market down 3% year-on-year.

It has also published a peak trading statement, with UK & Ireland Electricals like-for-like revenue up 2 percent, and UK & Ireland Mobile like-for-like revenue down 9 percent.

Alex Baldock, chief executive since April 2018, is leading a programme to turn around Dixons Carphone.

Dyson health and beauty sales rose by more than 20%, Shark vacuum sales nearly doubled and Dixons broke records on Fitbit and Apple Airpods wearables. It also sold 8,000 smart speakers each day.

"We broke records on wearables like Fitbit and Apple Airpods, while gamers couldn't get enough of the Nintendo Switch", said Baldock.

'Credit and services adoption rates increased, online sales grew strongly, and our newly remodelled stores performed well.

The company's shares rose 4.6% to 149 pence in early trading. It's encouraging to see growth in electricals, suggesting the investment to improve customer proposition hasn't been wasted money.

"Challenges do remain though". The UK & Ireland mobile market is still incredibly tough as people are upgrading their phones less often and opting instead for less lucrative SIM-only contracts.

Other reports by Click Lancashire

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