Dixons Carphone PLC (LON: DC.) has today provided a trading update for 10 weeks ended 4 January 2020.
· UK & Ireland Electricals like-for-like revenue +2%
o Broad based growth with strength in TVs, Gaming, Smart Tech and Small Domestic Appliances
o Accelerating market share gains in-store and online, against market down over -3%
o Online growth +7%
o Margin investment in improved customer proposition and unambiguous price promise
· International like-for-like revenue +3%; Nordics +3%, Greece +6%
o Good growth in Domestic Appliances and Kitchens
o Growing market leading position in Nordics, Norway and Finland particularly strong
o International online growth +5%
o Margin supported as customer club members drove better in-store sales
· UK & Ireland Mobile like-for-like revenue -9%
o Performance in line with expectations
· Strategic initiatives progressing well
o Online / Multichannel: UK&I online-in-store sales +140%. Nordics click & collect +22%
o Credit: UK&I Electricals credit penetration up >3%pts, transactions on credit +40% yoy
o Services: Increased adoption of set-up and protection services
o Mobile: On track to launch new mobile offer in H1 2020/21
· On track to meet targets – no change to financial guidance given at Interim results
Alex Baldock, Dixons Carphone PLC Group Chief Executive,
“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.”
