Strong electricals bring Dixons another good year

Dixons Carphone has reported growth driven by a “strong performance” in electricals.

In the UK and Ireland, the retailer saw full year life-for-like revenues increase by four per cent, with total revenues growing by two per cent.

Fourth-quarter like-for-like revenues increased by two per cent with strong performance in electricals, which offset a difficult year in phone sales.

During the year, Dixons said it has completed the transformation of its stores to the 3-in-1 format.

Overall, the group reported a nine per cent growth in revenues for the full year, with a six per cent increase in Q4.

In its trading update statement, Dixons Carphone quoted a guideline prediction for pre-tax profits of between £485 million and £490m, against its previous guidance of £475m to £495m.

Like-for-like revenues were up four per cent for the year and two per cent for Q4.

Group chief executive Sebastian James (pictured) said: “I am pleased to be reporting on another good year at Dixons Carphone. 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 multichannel and we have gained an even better understanding of how the online and off-line worlds work together to help customers make great choices on these important and life-enhancing technologies.

“Our full year like-for-like sales of four per cent over the year is pleasing across the group. In the last quarter, sales in the UK and Ireland were – especially in phone – 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.”