Dixons Carphone to shut 92 shops as earnings slide!

Dixons Carphone shares dive on profits warning

Dixons Carphone To Shut 92 Shops As Earnings Slide!

Currys PC World and Carphone Warehouse store - Dixons Carphone To Shut 92 Shops As Earnings Slide!

Dixons Carphone To Shut 92 Shops As Earnings Slide!

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Dixons Carphone

Dixons Carphone To Shut 92 Shops As Earnings Slide!

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Dixons Carphone employs greater than 42,000 folks in 9 nations

Shares in Dixons Carphone have closed 20.7% down after it warned of a pointy fall in earnings this 12 months.

Dixons Carphone To Shut 92 Shops As Earnings Slide!

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

Dixons Carphone To Shut 92 Shops As Earnings Slide!

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

Dixons Carphone To Shut 92 Shops As Earnings Slide!

Chief govt Alex Baldock stated “no one is proud of our efficiency” however the issues had been all “fixable”.

The corporate blamed “challenges” available in the market for cellphones and cell providers, together with a declining marketplace for long-term cell contracts and folks not renewing their handsets as continuously.

It had additionally seen weaker demand for computer systems.

Nonetheless, complete gross sales had been three% larger within the 12 months to 16 April, whereas like-for-like gross sales had been up four%.

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

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

‘Lots to repair’

Mr Baldock, who took over as group chief govt earlier this 12 months, stated 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 will do quite a bit 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 loads to repair, it is all fixable.”

The corporate expects an extra decline available in the market for long-term cell contracts within the present monetary 12 months, however forecasts a rise in its share of the marketplace for SIM-free handsets.

It was additionally “budgeting for a contraction” within the UK electrical items market.

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

“Dixons seems a bit flabby, and the market is simply as tender, however there must be some simple wins when it comes to making it leaner, particularly round retailer closures,” he added.

Dixons stated no jobs could be misplaced on account of the shop closures.

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