Profits halve at Dixons Carphone
By Sarah Wood | 15th July 2020
Dixons Carphone said it will review future shareholder payouts after the impact of lockdown restrictions and the under-performance of its mobile division halved profits.
Shares in the FTSE 250 company, which runs Currys and PC World stores in Gloucester and Cheltenham, were down nearly 11 per cent at 77 pence this morning, as reported by Reuters.
It said trading at its loss-making UK and Ireland mobile division had been worse than expected, with sales slumping 20 per cent after it shut stores in response to lockdown restrictions and cut jobs.
Adjusted pre-tax profit for the 53 weeks to the start of May fell to £166 million from £339 million last year, despite demand for items such as laptops, networking kits and gaming devices during lockdown.
Chief executive Alex Baldock said this year would be difficult, but he was optimistic for the longer term and, as many people carry on working from home, technology would be crucial. He confirmed that mobile would remain a key category for the company in future years.
He anticipated a weakening of overall consumer spending later this year and said turnaround plans would take longer than previously thought.
Total sales in April and May were down respectively 78 per cent and 48 per cent year-on-year.
Picture credit: Google 2016 Joel Palmer
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