Dixons Carphone reported revenue growth of 9 percent in the quarter ending the 30th July on Thursday morning, sending the group’s share price upwards.
The groups like-for-like revenue grew 4%, matched by regional like-for-like revenue growth in the UK and Ireland. In the Nordic countries, like-for-like revenue increased by 2%. The group performed particularly well in Southern Europe, where like-for-like revenue was up 13%, mainly driven by strong revenue growth in Greece.
Revenue from the Group’s connected world services grew 45%.
Dixons Carphone reported on continued market share gains as well as good progress in their UK & Ireland property program.
In their January trading update, the group announced that it will be closing down 139 UK and Ireland based PC World, Currys, Carphone Wearhouse and Currys – PC World combined stores. The measure is part of a new property rationalisation programme designed to combine the different brands under one roof. By combining stores, the company will reduce total store numbers from 1,227 to 1,093 stores, with 323 new three-in-one stores opening over this financial year.
In Thursday’s statement the Group stated that the ongoing refurbishing disruptions caused adverse impacts on UK and Ireland revenue of approximately 1%, offset by approximately 1% in revenue improvement due to sales transfers from closed stores.
Seb James, Group Chief Executive, said:
“We have had another very good quarter and I am happy to be reporting this level of performance today. We are delivering pleasing growth in all markets and continued high levels of customer satisfaction, and, thus far, continue to see no detectable impact of the Brexit vote on consumer behaviour in the UK.”
“We have an ambitious programme of development right across the Group this year, and this is being delivered on plan…We live in a world with increasingly discerning customers and with more moving parts than ever and we will continue to succeed only by remaining nimble and determined.”
Earlier this year, Dixon Carphone was awarded the “Retailer of the Year” Award at the 2016 Retail Week Awards.
Dixons Carphone shares rose on the positive report on revenue growth.
At 12.14pm, Dixons Carphone shares (LON: DC) were trading at 388.50p (+3.86%).
Katharina Fleiner 08/09/2016
