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Dixons Carphone enjoys strong Christmas thanks to mobile phones Dixons Carphone enjoys strong Christmas thanks to mobile phones Dixons Carphone enjoys strong Christmas thanks to mobile phones
(about 2 hours later)
Dixons Carphone reported that sales of mobile phones helped the electricals and gadgets retailer achieve strong Christmas sales but said it will close 134 shops this year.Dixons Carphone reported that sales of mobile phones helped the electricals and gadgets retailer achieve strong Christmas sales but said it will close 134 shops this year.
The company, formed from the merger of Dixons and Carphone Warehouse in 2014, said it would merge its remaining Currys and PC World shops and add a Carphone Warehouse department to each of the combined stores.The company, formed from the merger of Dixons and Carphone Warehouse in 2014, said it would merge its remaining Currys and PC World shops and add a Carphone Warehouse department to each of the combined stores.
Most of the closures in the UK and Ireland will come from shutting 79 large PC World and Currys stores so there will be no standalone shops remaining for each brand.Most of the closures in the UK and Ireland will come from shutting 79 large PC World and Currys stores so there will be no standalone shops remaining for each brand.
Dixons Carphone said no employees would lose their jobs and staff would be offered positions at a merged store near their current workplace. Combining the brands will save about £20m a year from 2017-18 with sales unchanged or better.Dixons Carphone said no employees would lose their jobs and staff would be offered positions at a merged store near their current workplace. Combining the brands will save about £20m a year from 2017-18 with sales unchanged or better.
Revenues at shops open for a year or more and online rose 5% in the 10 weeks to 9 January, Dixons Carphone in a trading statement. Pretax profit for the current financial year will be £440m to £450m, slightly higher than the average City analyst’s forecast of £440m, the company said.Revenues at shops open for a year or more and online rose 5% in the 10 weeks to 9 January, Dixons Carphone in a trading statement. Pretax profit for the current financial year will be £440m to £450m, slightly higher than the average City analyst’s forecast of £440m, the company said.
Dixons Carphone shares, up about 10% in the past year, fell 1.6% to 460p in early trading on Tuesday.Dixons Carphone shares, up about 10% in the past year, fell 1.6% to 460p in early trading on Tuesday.
Most of the Christmas sales increase came from mobile phones, with televisions and domestic appliances such as Dyson cordless vacuum cleaners also selling well. The company said in mid-December it expected a strong Christmas after record sales during the discount Black Friday period at the end of November.Most of the Christmas sales increase came from mobile phones, with televisions and domestic appliances such as Dyson cordless vacuum cleaners also selling well. The company said in mid-December it expected a strong Christmas after record sales during the discount Black Friday period at the end of November.
Sebastian James, the chief executive, said: “We think it was a good Christmas trading period. We are now also taking the opportunity to put our estate into its long-term shape by rolling out the three-in-one format across the UK and Ireland. Our experience has taught us that the net effect on both sales and colleague levels is likely to be neutral or better.”Sebastian James, the chief executive, said: “We think it was a good Christmas trading period. We are now also taking the opportunity to put our estate into its long-term shape by rolling out the three-in-one format across the UK and Ireland. Our experience has taught us that the net effect on both sales and colleague levels is likely to be neutral or better.”
Dixons Carphone has shops in Scandinavia and southern Europe, where a strong performance at its Greek business helped sales at established stores rise 9%.Dixons Carphone has shops in Scandinavia and southern Europe, where a strong performance at its Greek business helped sales at established stores rise 9%.
David Cameron, who has known James since they were at Eton school, last week called for British businesses to get behind the campaign to stay in the EU at a referendum expected this year.David Cameron, who has known James since they were at Eton school, last week called for British businesses to get behind the campaign to stay in the EU at a referendum expected this year.
Humphrey Singer, Dixons’ Carphone’s finance director, said the company would wait until the prime minister completes talks with other EU leaders before stating its position, but added: “Generally, we are keen, as a consumer-facing company that we live in a world where they [consumers] have a degree of certainty that gives them confidence to shop.”Humphrey Singer, Dixons’ Carphone’s finance director, said the company would wait until the prime minister completes talks with other EU leaders before stating its position, but added: “Generally, we are keen, as a consumer-facing company that we live in a world where they [consumers] have a degree of certainty that gives them confidence to shop.”