We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Dixons post sales fall over Christmas trading


Gross margins across the group were flat year on year

Article comments

Dixons reported a group sales fall of 5 percent over the Christmas trading period but retained gross margins and said it outperformed UK rivals, the electrical goods retailer said on Monday.

Dixons Retail, whose UK brands include Currys and PC World, the sales decline accelerated in the 12 weeks to 7 January, but like-for-like sales in the two weeks to 14 January were up 2 percent. Sales rose 23 percent in the period from 4 January to 14 January.

Gross margins across the group were flat year on year, said Dixons, which also runs Elkjop in Nordic countries, UniEuro in Italy and Kotsovolos in Greece.

The company said the post-Christmas sale period was distorted by the VAT rise last year.

"Consumer confidence in many of our markets remains fragile and we will maintain a cautious approach to the outlook for the year ahead," said chief executive John Browett.

European shoppers have been curbing spending as their disposable incomes are squeezed by rising prices, muted wages growth, government austerity measures and fears over the impact of the euro zone debt crisis.

Electrical goods chains such as Dixons and European No.1 MediaMarkt Saturn are facing extra pressure from online cut-price retailers and supermarkets.

In October US group Best Buy abandoned plans for a chain of European megastores, while Kesa Electricals effectively paid a bidder to take loss-making chain Comet off its hands.

Shares in Dixons, which have lost 55 percent of their value over the last year, closed Monday at 9.7 pence, valuing the business at £350 million.

Share:

Recommended Articles

Comments

Dixons post sales fall over Christmas trading
Financial Planning

Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..


Amazon invests $2bn more in India as online retail booms

The announcement comes a day after an Indian retailer got $1bn in fundingmore ..

Twitter buys NY image start-up Madbits

Madbits uses deep learning techniques to understand the content of an imagemore ..

Barclays posts 7% fall in pretax profits

Barclays’ costs fall 4.5% with increased digitisationmore ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *