Dixons on track for profit despite still-falling sales
Published 13/05/2011 | 05:00
Electronics retailer Dixons, which operates about 30 PC World and Currys stores in Ireland, said it's on track to deliver on previously revised profit guidance, even as underlying group sales continued to fall.
In an interim statement yesterday, the company said that underlying group sales fell 2pc in the full year to the end of April and were 4pc lower in the second half of the year.
Its like-for-like sales fell 3pc in the UK and Ireland during the full year, while its internet sales were down 5pc on a like-for-like basis.
Chief executive John Browett said that market conditions have remained challenging in many of its markets and that continuing headwinds make the group cautious in its outlook.
"Having had a strong World Cup performance as well as the exclusivity of the iPad last year, we have tough comparables ahead," he said.
Dixons announced last month that it's exiting the Spanish market, closing its 34 stores and online business there.
"It appears a difficult task for 2012 profit before tax to rise, despite potential mitigation from withdrawing from the loss-making Spanish activities," said David Jeary, an analyst at Investec Securities.
This week, rival Comet said that it's shutting 10 stores and a dozen service centres in response to tough trading conditions in the UK.