Dixons Carphone PLC (LON:DC) have said that its festive trading has been solid in an update on Tuesday.
The firm said that Christmas trading had been good, despite a weak retail market which had hit consumer confidence and British business.
Dixons’ revenue for the 10 weeks to January 4 was -2% higher on a reported basis, but was flat like-for-like however shares have been in green on Tuesday. Due to a clerical error Dixons had first reports growth of 2% as opposed to a 2% decline.
Notably, the firm saw a rise in its UK and Irish Electrical revenue where a climb of 1% was reported, and 2% on a like for like basis.
Dixons’ mobile unit stumbled however, where mobile revenue fell 11% with the like for like figure dropping 9%.
The firm said that there was growth in televisions, gaming, smart technology, and small domestic appliances, while the decline in Mobile revenue was in line with expectations.
On an international scale, Dixons reported that revenue fell 1% but rose 3% on like for like terms, whilst good performance in Greece led to revenue growth of 3% and like for like revenue spikes of 6%.
Alex Baldock, Group Chief Executive commented
“We’ve had a good Peak in a weak UK market and we’re on track to deliver what we promised for this year, and with our longer-term transformation.
Peak saw us continue to invest in our strategic initiatives with encouraging results. Credit and services adoption rates increased, online sales grew strongly, and our newly remodelled stores performed well. Coupled with our unambiguous “You won’t get it cheaper. Full stop” price promise, alongside better availability and delivery, this led to big improvements in customer satisfaction and strong market share gains in Electricals.
Our customers loaded up on amazing technology this Christmas. The supersizing TV trend kept on giving as we sold 75% more 65″+ TVs, Dyson Health & Beauty sales were up over +20%, Shark Vacuum sales almost doubled and we sold 8,000 smart speakers each day. We broke records on wearables like Fitbit and Apple Airpods, while gamers couldn’t get enough of the Nintendo Switch. Our new Gaming Battlegrounds showed the exciting potential of more enticing, immersive store experiences and drove strong sales and share gains.
None of this would be possible without our thousands of capable and committed colleagues who work hard to deliver a great customer experience every day. I cannot thank them enough as together we continue to unleash Dixons Carphone’s potential.”
Dixons remain consistent from September
In September, the firm reported a similar drop In mobile sales but said that its guidance for the year remains unchanged.
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.
Dixons have seemingly pulled the reigns back with their festive trading, however the tough retail market does continue to bear upon the British high street.
Shares in Dixons trade at 149p (+4.63%). 21/1/20 11:21BST.
