Dixons Carphone PLC (LON: DC.) was a top FTSE 250 gainer in morning trade after the electricals and mobile phones retailer saw its fourth-quarter sales beat forecasts and its narrowed it guidance for full-year profit.
The group, which owns Currys, PC World and Carphone Warehouse in the UK, saw its like-for-like group sales increase by 2% the 16 weeks to April 29, ahead of the company compiled consensus forecast of 0.9%.
READ: Christmas trading at Dixons Carphone beats forecasts
The retailer said its like-for-like sales in the UK and Ireland rose 2%, driven by a strong electricals performance
Meanwhile likes-for-sales in the Nordic region – where it owns Elkjop and Elgiganten – were also 2% higher, and in southern Europe, where it owns Greek chain Kotsovolos, like-for-like sales increased by 5%.
Dixons Carphone said its headline full-year pre-tax profit guidance was now £485mln-£490mln, a narrowing from the previous forecast of £475mln-£495mln.
UK consumer continues to be active in the market, says boss
Seb James, the retailer’s group chief executive, said: “Our full year like-for-like sales of 4% over the year is pleasing across the Group; in the last quarter, sales in the UK & Ireland were - especially in phone - impacted by the later launch of the iconic (and excellent) Samsung S8 and by a late Easter.”
He added: “Given our performance despite this headwind, our view is that the UK consumer continues to be active in the market, but we anticipate no let-up in their - very rational - view that price and service are critical factors in deciding where to shop.”
In early morning trading, Dixons Carphone shares were up 3%, or 9.9p at 336.5p.
George Salmon, equity analyst at Hargreaves Lansdown, said: “The demise of high street rivals like Comet and Phones4u means there isn’t a great deal of ‘real world’ competition for Dixons Carphone’s ‘3-in-1’ mobile, computing and white goods stores.
“Add in the fact that tech is an increasingly important part of our daily lives, and it’s easy to see the upside.”
He added: “However, the danger is from the less visible challenge posed by online competitors such as the mighty Amazon. Sterling’s weakness, which raises the cost of importing electricals, is providing another headwind.”