Dixons Carphone CEO dances on rivals’ graves, swipes share from survivors

Simply having a wonderful Christmas time

Got Tips? 8 Reg comments

Christmas is unlikely to come early for Brit shoppers at Dixons Carphone. Essentially, the retail borg is awash with cash so it won’t on this occasion need to slash prices to counter a summer of soggy sales.

Numbers at the half-way point of fiscal ’16 – ended 31 October – filed this morning, showed like-for-like revenue up five per cent year-on-year to £4.39bn, or up three per cent as reported, showing continuing momentum since last year’s merger.

UK and Ireland ops grew two per cent to £2.87bn, the Nordics edged up one per cent to £1.19bn, and Southern Europe fell six per cent to £257m, but this was related to the weakness of the Euro.

“Against a broadly flat market overall and a very strong comparative period we have seen continued like-for-like growth driven by market share gains across all territories,” said CEO Sebastian James.

Both elements of the company – Dixons and Carphone – have seen competition diminish in recent years following the collapse of Comet and Phones4U.

The Brit stores saw cost and “synergy savings” as the Dixons HQ in Hemel Hempstead was shuttered. White goods offset a “fall in demand” for tabs and PCs. The mobile business mopped up some share, it said.

A “strong” Black Friday was a decent opening to the Christmas sales season, the CEO said.

He claimed DixCar made “progress” on “price-matching” against the local Nordics retailers but this, coupled with forex pressures, had “inevitably had some impact on margins” there.

Pre-tax profit was up 35 per cent to £135m, but after finance costs, HMRC rummaging, and losses from discontinued operations, net profit for the year was £86m, compared with £46m a year ago. ®

Sponsored: Practical tips for Office 365 tenant-to-tenant migration

SUBSCRIBE TO OUR WEEKLY TECH NEWSLETTER


Keep Reading

he exterior of the carphone warehouse on January the 23rd, 2015, in London, England, UK. The carphone warehouse has over 3000 stores. Editorial Credit: Michaelpuche / Shutterstock.com

UK Carphone Warehouse shops set to sling their last phones, 2.9k redundancies hit high street, as Dixons closes all 531 'standalone' sites

CW to live on as a counter in a Curry's, as CEO says: Mobile is 'currently holding back the whole business'
man signs for fridge delivery

Brits swarm Dixons Carphone for laptops, printers, games consoles, fridges, freezers to weather out COVID-19 storm

Online sales up 72%, but retailer warns of impact of store closures
Carphone warehouse with iron shutters closed

Dixons Carphone top brass take 20% pay cut as swathes of Brit workforce furloughed

Exclusive - updated But outgoing Carphone Warehouse staff can't use government support scheme to defer redundancies
panic

Dixons Carphone to London Stock Exchange: Yay, we grew 2% in the festive quarter. Oh, hang on, no we didn't

'Clerical error' causes major screw-up... misery loves company at UK's largest 'leccy retailer

Hm. Is it wise to assume 'no material disruption' from 'volatile' UK climate, Dixons Carphone?

Mobile biz is a mess, but we're sticking to revenue guidance
Hotel manager shocked sitting in front of the monitor of computer.

Don't panic: Dixons Carphone's share price crashes 30% after statutory losses hit £329m

CEO talks of 'more pain', 'substantial losses' in Mobile amid industry-wide handset sales meltdown
angry man

Carphone Warehouse fined £29m for mis-selling mobile insurance to punters who didn't need it

Smartphone retailer at centre of very own PPI scandal after FCA probe
smashed phone

Dixons Carphone still counting cost of miserly mobile phone sales

Things are, er, looking up though: activist investor Elliott Management is reportedly sniffing around retailer

Biting the hand that feeds IT © 1998–2020