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Dixons blames sunny April for poor sales

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Dixons Store Group (DSG) said sales were hit by the unseasonally sunny weather in April and problems in France and Italy.

For the year ended 28 April 2007, Dixons Store Group saw total sales grow 14 per cent or four per cent like for like.

John Clare, group chief executive of DSG, said he was pleased with progress during a year of change for the company.

DSG will take a charge of between £180m and £200m to get rid of its businesses in France and Italy and to dispose of its UK mobile business Genesis Communications.

Other international business did well - sales in Ireland grew eight per cent, Nordic business by nine per cent, and Greek sales by seven per cent. Warm weather in April hit sales in the UK and Nordic regions.

Currys saw sales grow four per cent and margins improve by 0.6 per cent year on year thanks to benefits of a new group buying strategy. Airport sales were down eight per cent on last year thanks to new security measures.

In the UK, PC World grew sales by four per cent on last year. Laptop sales grew by 58 per cent in terms of numbers and 31 per cent in terms of revenue, but this growth had a negative impact on margins.

Online sales grew strongly - from three per cent last year to 10 per cent of total turnover.

More on the DSG website here. ®

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