Monday, March 30, 2020

Dixons UK & Ireland LFL’s jump 7% in Q1


Electricals retailer Dixons saw like-for-like (LFL) sales rise seven per cent across its UK & Ireland operations in its first quarter, according to results released today.

Across its European operations, LFL‘s increased five per cent while total sales were boosted two per cent for the 12 weeks ended July 21st 2012.

Northern European stores continue to perform strongly though the group emphasised the “continued difficult economic environments” affecting its Italian and Greek businesses, adding that appropriate action was being taken to improve its standing.

Last month, the group purchased a controlling stake in e-commerce company Pixmania and the retailer noted that trading had been “challenging” as LFL‘s sank three per cent over the quarter, though Sebastian James, Dixons Retail CEO said that the business now came under Dixon‘s day-to-day control and as such the retailer is well placed to “take the decisive actions necessary to improve its performance.”

Multichannel fared well over Q1, with group sales jumping 39 per cent while UK & Ireland saw multichannel sales growth of 48 per cent over the period and James welcomed the figures, commenting: “While it is still early in our financial year, I am encouraged by the start we have made across the Group.

“We have had a real boost from a busy summer of events in the UK and our Northern European operations continue to go from strength to strength.

“August has proven to be quieter across the retail sector in some of our markets and we continue to be cautious about the outlook.”

In spite of this caution, Dixons‘ positive performance is to be applauded considering the fast-changing market, said Conlumino‘s Lead Consultant Simon Chinn, who expects trading over the coming months to remain solid.

“Looking ahead, next quarter is likely to see more of the same from Dixons,” he explained.

“While it has indicated that trading in August was quieter in some markets like the UK as consumers focused on watching the Olympics rather than going out and spending, sales in September are likely to benefit from back to school purchases.

“Following that, new product launches such as Windows 8 and new technology launches from the likes of Samsung and Apple likely in the run up to Christmas, bode well for sustained improvements to trading in the coming quarters.”


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