Almost a year since Phones 4U fell into administration, Dixons Carphone has posted an 8% increase in like-for-like sales as it piggybacks off the collapse of its former rival retailer. This figure rises to 10% when focused on the UK and Ireland.
Group Chief Executive Sebastian James blamed a less impressive 4% increase in the Nordics on a “slightly less buoyant market backdrop” and praised the Group’s overall performance during the quarter. Like-for-like revenues in Southern Europe flat-lined during the period, though trading improved in Spain and even Greece, despite marketing challenges.
The electronics giant said that the domestic market was the key driver, boosting revenue increase across its territories. James added that the sales of ultra-HD TVs and fitness gadgets have jumped.
“Our multi-channel proposition continues to make good headway against our competitors, both on and offline, and we continue to invest in those areas that will ensure our long term profitability: service, delivery options, expansion of free warranty, digital marketing and Norwegian price competitiveness.” James continued. “Work has started well on our new venture with Sprint in the US and we are opening our first stores next week. The integration is also going smoothly with our UK head-office move on track and the new management structures in place and working well.
Overall, a very good start to the trading year but I am aware that there is plenty of the year left to go. In the next quarter we will anniversary the startlingly successful iPhone6 launch, the consolidation of the mobile market and, later in the year, an extraordinary Black Friday. Nevertheless, our whole team believes that the business is in very good shape to have another successful year, and I look forward to giving a further update at the interims in December."
Dixons Carphone is the result of a merger that took place last year, and encompasses Carphone Warehouse, Currys and PC World in the UK, as well as other brands internationally.