Feeds

Dixons chokes on Christmas turkey

Customers stay away in droves

  • alert
  • submit to reddit

Shares in Dixons slumped in early morning trading after the high street electrical retailer revealed it had experienced a very unhappy Christmas.

Dixons' share price slipped 20 per cent (29p) to 118p after the company admitted that sales in December were "below expectations".

This was due mainly to weaker sales of games consoles, audio products and extended warranties. However, sales of computers, widescreen TVs and DVD players - especially in the sales - proved a little more encouraging.

Sales in the UK for the eight weeks ended January 4 grew by 6 per cent but were flat on a like-for-like basis.

Publishing its interim results today for the 28 weeks ended November 9 2002, pre-tax profit increased 8 per cent to £94.8m on turnover of £2.6bn.

However, following the disappointing Christmas it seems forecasts for full-year profits are being downgraded to around £300m, down from around £320m.

In a statement Dixons chairman, Sir John Collins, said: "Trading in the UK over the Christmas period has been below our forecasts.

"With an increasingly uncertain economic outlook and consequent risk to consumer confidence, we are cautious about the near term outlook for our markets.

"We therefore expect that the results for this financial year will be below current market expectations," he said.

Some market watchers are viewing Dixons' performance as a key economic indicator for the wider UK economy warning that this could signal a retreat in consumer confidence. ®

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.