Dixons Carphone narrows profit guidance, appoints Alex Baldock as CEO

Dixons Carphone narrowed its full-year profit guidance on Monday as it announced the appointment of Alex Baldock as its new chief executive.

The company said it now expects to deliver full-year pre-tax profit of between £365m and £385m, down from previous guidance of between £360m and £400m amid continued margin pressure on its mobile segment.

In the 10 weeks to 6 January, group revenue was up 4% year-on-year, while like-for-like revenue was 6% higher. UK & Ireland LFL revenue rose 3%, while LFL revenue in the Nordics was up 11% and in Greece, LFL sales were up 23%.

Electricals sales were up 1% against strong comparables, while the mobile division saw sales grow 8% thanks to the phasing of the iPhone X launch and new propositions.

Chief executive Sebastian James said "the stars of the show" were unquestionably Greece and the Nordics, while growth in the UK and Ireland was satisfying "in this more cautious consumer environment".

"In UK&I electricals, our Boxing Day sales did not quite mirror the promise of our very strong Black Friday week, but we are very confident that we grew market share in pretty much every category. Particularly strong this year were large-screen TVs, gaming, smart tech, and SIM free phones; we sold just under one in three SIM free phones in the UK market over the period, further strengthening our customer relevance.

"Our international businesses had a terrific Christmas period with Greece enjoying its first real Black Friday and the Nordics benefiting from better availability and delivery propositions following our investment in a new small product warehouse last year."

Also on Monday, the group said Baldock's appointment as CEO will be effective from April 2018. He will succeed James, who plans to step down around the end of the financial year after six years in the role to join Walgreens Boots later this year.

Baldock is currently group CEO of online retailer Shop Direct, a position which he has held since 2012.

Baldock said: "I can't wait to get started at Dixons Carphone. Seb and the team have achieved an extraordinary amount, not least reinforcing Dixons Carphone's position as a leading electrical and mobile retailer in Europe at a time of wrenching change. It's with great excitement that I look forward to getting to know the people and the customers at Dixons Carphone, and to building on these achievements.

"Dixons Carphone is exceptionally well-placed to help customers navigate the complex, fast-changing world of technology and mobile, and I feel privileged that Ian and the Board have asked me to lead the Group to make the most of that opportunity."

Neil Wilson, chief market analyst at ETX Capital, said: "Looking at the results and the clear shift in the retail space we have seen over this peak season, a new boss prepared to slash the vast store estate could be exactly what the company requires.

"The company got a big lift from the iPhone X launch, with mobile sales +8%. This was a welcome recovery as higher handset costs and a lack of major product refresh cycles has left consumers replacing handsets more slowly. Electricals were just +1%, but the group continues to gain market share in this competitive space."

At 0805 GMT, the shares were up 3.3% to 194.10p.