Dixons Carphone mobile sales down, full year guidance unchanged

Dixons Carphone mobile sales down, full year guidance unchanged

Dixons Carphone mobile sales down, full year guidance unchanged

Dixons Carphone reported a drop in mobile phone sales on Thursday, but said that its guidance for the year remains unchanged.

Shares in Dixons Carphone (LON:DC) were trading over 3.5% higher on Thursday morning.

Mobile like-for-like revenue in the UK and Ireland was down 10%, Dixons Carphone revealed in a trading update for the 13 weeks ended 27 July.

Earlier in June, the company posted a statutory loss before tax of £259 million, warning that UK mobile will continue to make a significant loss.

Despite the fall in mobile phone sales, the leading multinational consumer electrical and mobile retailer said that its guidance for the year remains unchanged.

“We’re on track with both our trading this year and our longer-term transformation,” Alex Baldock, Group Chief Executive, said in the trading update.

“The Mobile market is as challenging as expected, underlining the need for the decisive actions that we set out in June. We remain committed to growing Electricals sales and headline profits in UK & Ireland and International this year, and to this being the trough year for Mobile losses,” the Group Chief Executive of Dixons Carphone continued.

Our longer-term transformation is also on track. We made further gains in our big priorities of Online, Credit and Services to help our customers choose, afford and enjoy amazing technology. Over time these will drive increasing benefits for our customers and help make us a much more sustainably valuable business.”

Alex Baldock added that “the current political and economic climate is volatile,” alluding to the prevailing Brexit chaos.

As the Halloween deadline extension approaches fast, the only thing certain for the nation at this point is additional uncertainty.

“Assuming no material disruption from that,” the Group Chief Executive said, “we stand by our full year guidance, as we do our longer-term commitments on EBIT margin and cashflow”.

Shares in Dixons Carphone plc (LON:DC) were trading at +3.79% as of 10:28 BST Thursday.