Lively last quarter helps boost Dixons Carphone

Electronics retail group Dixons Carphone posted an update on its fourth quarter trading to 29 April on Wednesday, with reported revenues up 6% across the group, or 2% on a like-for-like basis during the 16-week period.

The FTSE 250 firm said reported revenues were down 1% in the UK and Ireland, or up 2% on a like-for-like basis, while they improved 20% on a reported basis in the Nordics, or 2% like-for-like.

Reported revenues were ahead 16% in Southern Europe, or 5% on a like-for-like basis, while Connected World Services achieved 12% growth in reported revenues.

For the full year, reported revenues were ahead 9% across the group, or 4% on a like-for-like basis.

In the UK and Ireland, full-year reported revenues were ahead 2%, and 4% like-for-like, while reported Nordics revenues were up 20%, with like-for-like rising 1%.

Southern Europe reported revenues also jumped 20% during the year, or 6% on a like-for-like basis, while Connected World Services revenues were 41% firmer.

The board reported that gross margins were “broadly stable” across the year, and it issued headline profit before tax guidance of £485m-£490m for the full year, narrowing from previous guidance for £475m-£495m.

“I am pleased to be reporting on another good year at Dixons Carphone,” said group chief executive Seb James.

“Despite a lively political backdrop, we have been able to continue to grow our business and maintain very high levels of customer satisfaction across the group.

“We have continued to evolve our approach to multi-channel and we have gained an even better understanding of how the online and offline worlds work together to help customers make great choices on these important and life-enhancing technologies.”

James said the firm’s full year like-for-like sales of 4% over the year was “pleasing” across the group, with sales in the UK & Ireland in the last quarter especially impacted by the later launch of the iconic - and “excellent - Samsung S8 and by a late Easter.

“Given our performance despite this headwind, our view is that the UK consumer continues to be active in the market, but we anticipate no let-up in their - very rational - view that price and service are critical factors in deciding where to shop.

“Finally, I would like to thank our 42,000 colleagues in eleven countries around the world for their tireless work this year.

“Electrical and phone retail can be a complex and lively business, but our colleagues have done a great job of making it look easy.”