Tuesday 23 May 2017

Dixons' sales drop 10pc in Ireland and the UK

RETAIL

John Mulligan

John Mulligan

60pc

Share price dropped in a year

ELECTRICAL retailer Dixons -- which owns the Currys and PCWorld chains -- has said it is still counting on a massive revamp of its stores to generate sales as consumers continue to tighten their purse strings.

In a trading statement yesterday, Dixons Retail said that like-for-like sales in its UK and Irish markets were down 10pc in the 12 weeks to July 23 as the positive impact of last year's World Cup was not repeated.

Total like-for-like group sales were 7pc lower, but the company said its UK business had performed in line with expectations.

The group operates around 30 PCWorld and Currys stores in Ireland, as well as Dixons outlets at Dublin Airport.

Dixons chief executive John Browett said the latest performance was as had been expected. He added that while underlying market conditions had remain- ed challenging this year, the company had continued to trade ahead of its markets.

"While we remain cautious about the economic outlook, we will continue to deliver on our renewal and transformation plan," he said.

Mr Browett added that the company was also on track to deliver full-year financial expectations and expected to have a "decent Christmas" trading period.

Dixons stock soared as much as 10pc earlier yesterday before Mr Browett described speculation that it was involved in takeover talks with Carphone Warehouse and Best Buy as "overblown".

Dixons shares have tanked almost 60pc in the past 12 months and it is one of the most heavily-shorted stocks on the FTSE.

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