Tuesday 26 September 2017

Dixons shares down despite signs of stabilisation

John Mulligan

John Mulligan

SHARES in electronics retailer Dixons fell this morning even as its first half financial figures hinted at some stabilisation of sales in the UK and Ireland.

The company’s shares fell over 3pc earlier this morning, before recovering slightly. Just a short while ago they were 2pc lower.

Dixons, which operates brands such as Currys and PC World, said group like-for-like sales in the first half of its financial year rose 3pc to £3.28bn (€4.04bn), while its net loss narrowed to £22.2m from £25.3m

Sales in the UK and Ireland returned to first half profitability for the first time in five years in the six months to October 13, according to Dixons. The company has close to 30 outlets in Ireland.

“I am particularly encouraged by our performance in the UK & Ireland and in Northern Europe and we were particularly busy during the sporting and cultural events during the summer,” said Dixons chief executive Sebastian James.

He said the company is outpacing competitors and that it hasn’t been impacted as collapsed rival Comet continues to liquidate stock. Dixons expects to benefit from Comet’s failure in the long-term.

Dixons has been battling to boost sales in a tough economic environment. Former chief executive John Browett, who left earlier this year to run Apple’s retail stores and departed that role less than 10 months later, had focused on revamping PC World and Currys outlets. The strategy has been working, with those remodelled and larger outlets posting bigger sales.

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