Dixons Carphone shares dive on earnings warning!

Dixons Carphone shares dive on profits warning

Dixons Carphone Shares Dive On Earnings Warning!

Currys PC World and Carphone Warehouse store - Dixons Carphone Shares Dive On Earnings Warning!

Dixons Carphone Shares Dive On Earnings Warning!

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Dixons Carphone

Dixons Carphone Shares Dive On Earnings Warning!

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Dixons Carphone employs greater than 42,000 folks in 9 international locations

Shares in Dixons Carphone have sunk by nearly 20% after it warned of a pointy fall in earnings this 12 months.

Dixons Carphone Shares Dive On Earnings Warning!

The cell phone and electrical items retailer additionally mentioned it will shut 92 of its greater than 700 Carphone Warehouse standalone shops this 12 months.

Dixons Carphone Shares Dive On Earnings Warning!

It expects pre-tax earnings for 2017-18 to be £382m, nevertheless it predicts earnings will fall to £300m in 2018-19.

Dixons Carphone Shares Dive On Earnings Warning!

Chief government Alex Baldwin mentioned “no one is pleased with our efficiency” however the issues have been all “fixable”.

The corporate blamed “challenges in UK cell” for its issues, together with “contractual constraints” corresponding to folks not renewing their handsets as ceaselessly.

Revenue margins in its electrical enterprise have been additionally dented within the fourth quarter as a result of folks have been shopping for much less worthwhile gadgets, corresponding to white items like washing machines.

Nonetheless, whole gross sales have been three% greater within the 12 months to 16 April, whereas like-for-like gross sales have been up four%.

Within the UK, gross sales grew 2% for the 12 months as an entire, and by 1% within the fourth quarter.

The worldwide division division did higher, with like-for-like gross sales within the Nordics up 9% within the 12 months and Greece up 11%.

‘A lot to repair’

Mr Baldock, who took over as group chief government earlier this 12 months, mentioned the worldwide enterprise was in “fine condition” so “we’re focusing early motion on the UK”.

“We can’t tolerate our present efficiency in cell, or as a bunch. We all know we are able to do loads higher,” he added.

“Eight weeks within the enterprise have cemented my optimism about Dixons Carphone’s long-term prospects. I’ve discovered distinctive strengths, and although there’s a lot to repair, it is all fixable.”

Neil Wilson, chief market analyst for Markets.com, described the earnings warning as “grim” however agreed the issues have been “all fully fixable”.

“Dixons seems to be a bit flabby, and the market is simply as delicate, however there ought to be some simple wins by way of making it leaner, particularly round retailer closures,” he added.

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