Dixons Carphone says profits will hit top of targetsStaff writer ▼ | May 25, 2016
Dixons Carphone said that annual pre-tax profits are likely to reach top half of its guidance as the retailer gained market share in electricals and mobile in most of its key markets.
Dixons Carphone Like-for-like revenue rose 5%
The core UK business also delivered 4% LFL growth, well ahead of the consensus 1.8% estimate, with the Nordics also far in excess of forecast 3.8% LFL growth.
Southern Europe, the smallest geographical component for the group, was expected to be flat, against a tough comparative of +8% last year when the Greek government was subsidising a one-off campaign for free tablets to improve digital connectivity for disadvantaged households.
Group chief executive Seb James was upbeat, saying: "We have continued to see good like-for-like growth with a very strong performance in our mobile phone business in the UK. I am also pleased that growth has been seen in pretty much all of our businesses across the group."
"As a result we are confident in narrowing our profit range upwards, with PBT now expected to be between £445m and £450m for the year, an increase of approximately 17% over last year."
Adding his view to the recent commentary about UK consumers, he said the company felt they were "ready to spend" but "more canny, and so need to be tempted with great deals and exciting new products". ■