Dixons Carphone says UK electricals makes strong start to year

LONDON: Dixons Carphone said its UK electricals business made a strong start to the year, helped by the soccer World Cup and an improving consumer backdrop.

Last month Dixons Retail, Europe's No. 2 consumer electronics retailer, and Carphone Warehouse, Europe's largest independent mobile phone firm, concluded an all-share merger to create Dixons Carphone, a consumer electricals powerhouse with a place in Britain's blue chip FTSE 100 index.

Tuesday's trading update covers a period that precedes the Aug. 7 completion of the merger.

The group said sales at Dixons Retail's UK/Ireland stores open over a year rose 4 per cent in the three months to July 31 - a touch ahead of analysts' average forecast of up 3.8 per cent.

Dixon Retail's like-for-like sales were up 1 per cent in the Nordics, versus a consensus forecast of up 0.8 per cent, and up 6 per cent in Greece, well ahead of a consensus of 2.5 per cent.

Like-for-like sales at Carphone's CPW business were down 6 per cent in the four months to Aug. 2, versus a consensus forecast of down 5.8 per cent.

That outcome came after seven straight quarters of like-for-like growth and reflected very tough comparative numbers with the same period last year, when like-for-like sales were up 13 per cent, as well as difficult market conditions in Spain.

"I am pleased to report a good start to the year and to our new shared enterprise," said Chief Executive Seb James.

"The integration is going well with seven departments now serving both parts of the business in an integrated way and, although it is early days, our 11 stores-in-store are performing ahead of the business case that we set out in our merger announcement."

Shares in Dixons Carphone closed Monday at 369.3 pence, valuing the group at 4.3 billion pounds.