Dixons Carphone PLC Dixons Carphone - Christmas 2016/17 Trading Update (9001U)
January 24 2017 - 2:00AM
UK Regulatory
TIDMDC.
RNS Number : 9001U
Dixons Carphone PLC
24 January 2017
Dixons Carphone plc
Fifth consecutive year of Christmas growth
Trading update (10 weeks ended 7 January 2017)
Q3 2016/17 revenue Year-on-year Year-on-year Like-for-like(1)
Sterling local
currency
-------------------- ------------- ------------- -----------------
UK & Ireland 4% 3% 6%
Nordics 15% 1% (1)%
Southern Europe 24% 6% 5%
CWS 38% 34% n/a
-------------------- ------------- ------------- -----------------
Group 8% 3% 4%
-------------------- ------------- ------------- -----------------
Note:
In the UK & Ireland, like-for-like revenue improved by
approximately 4% as a result of sales transferred from closed
stores. This mainly affected
UK&I electricals, where year-on-year sales for these
products were +5% with like-for-like revenue at +9%. We anticipate
that this programme will
be substantially complete by the end of the current financial
year.
Seb James, Group Chief Executive, said:
"I am pleased to be reporting another good Christmas period of
growth - our fifth consecutive year. At a time of significant
political uncertainty around the world, it was heartening to see
that customers were choosing to enjoy the benefits that new
technologies could bring to their lives during this holiday season.
This year, as a result of our scale in all of our markets, we were
able to offer prices that were truly ground-breaking during both
our Black Friday week and our annual Boxing Day week sales - while
maintaining margins - and we believe that we have outperformed the
market during the period. As a result, and despite the fact that
there is quite a bit of the year to go, we anticipate a meaningful
uplift in year-on-year profitability this year over last and
confirm our outlook in line with market consensus at
GBP475m-GBP495m of headline profit before tax for the year ending
29 April 2017.
It was interesting to see the shape of peak trading this year:
Black Friday was our biggest ever across the Group and in the UK we
saw trading stretch further across the week as well. Customers
across the Nordics have taken Black Friday truly to their hearts,
although the Nordic market was a little quieter than normal across
the period. The Nordic team took the decision to optimise margins
which were up year-on-year as a consequence. In all markets it was
a strong year online with significant growth, including white
goods. Patchy availability of the larger, higher margin phones and
tablets made these categories tougher this year but - on the other
hand - offers up opportunities for next year where we do not expect
the same issues. Large screen TV, in our view a bellweather for
consumer sentiment, showed a solid performance over peak in all
markets which we were glad to see. Finally, the Knowhow trial in
Leeds is achieving fantastic net promotor scores and we are also
delighted to welcome a very experienced and senior CEO for this
division, Feilim Mackle, with a remit to transform and grow our
successful services proposition.
Generating a successful Christmas means starting planning in
January, and the teams are already hard at work making sure that
our next Christmas season will be even better. I would like to
thank my remarkable, hard-working and resilient colleagues for the
time and effort that they have put in over this holiday period to
achieve these results. I am very proud to be a part of this great
company, as we look forward to another year of innovation and
growth."
[1] Like-for-like revenues are calculated based on Headline
store and internet sales using constant exchange rates. New stores
are included where they have been open for a full financial year
both at the beginning and end of the financial period. Revenues
from franchise stores are excluded and closed stores are excluded
for any period of closure during either period. Customer support
agreement, insurance and wholesale revenues along with revenue from
Connected World Services and other non-retail businesses are
excluded from like-for-like calculations. Revenues from Carphone
Warehouse stores-within-a-store are included in like-for-like
Investor and analyst webcast
There will be a management presentation for investors and
analysts at 09:00 am (GMT) this morning. The presentation will be
broadcast on our website, www.dixonscarphone.com via a listen-in
only webcast.
Dial-in - UK/Int'l: +44 (0) 20 3059 8125; passcode: 6389 (to be
quoted to the operator)
Seven day replay - UK/Int'l: +44 (0) 121 260 4861; passcode:
5028006 followed by #
Next announcement
The Group will publish its Q4 trading update on Wednesday 24 May
2017.
For further information
IR, PR & Corporate +44 (0)7748 933
Kate Ferry Affairs Director 206
+44 (0)7979 696
Mark Reynolds Head of Investor Relations 498
+44 (0)7834 256
Hannah Collyer Head of Media Relations 775
Nick Cosgrove,
Helen Smith Brunswick Group +44 (0)207 404 5959
Information on Dixons Carphone plc is available at
www.dixonscarphone.com
Follow us on Twitter: @dixonscarphone and @DCSebJ
About Dixons Carphone
Dixons Carphone plc is Europe's leading specialist
electrical and telecommunications retailer and services
company, employing over 42,000 people in eleven countries.
Focused on helping customers navigate the connected
world, Dixons Carphone offers a comprehensive range
of electrical and mobile products, connectivity and
expert after-sales services from the Geek Squad and
Knowhow.
Dixons Carphone's primary brands include Carphone
Warehouse, CurrysPCWorld and Simplifydigital in the
UK & Ireland, Elkjøp, Elkjøp Phonehouse,
Elgiganten, Elgiganten Phonehouse, Gigantti and Lefdal
in the Nordic countries, Kotsovolos in Greece, Dixons
Travel in a number of UK & Ireland airports and Phone
House in Spain. Our key service brands include Knowhow
in the UK, Ireland and the Nordics, and Geek Squad
in the UK, Ireland and Spain.
Business-to-business (B2B) services are provided through
Connected World Services (including honeyBee software
products), PC World Business and Carphone Warehouse
Business. Connected World Services aims to leverage
the Group's existing expertise, operating processes
and technology to provide a range of services to businesses.
Dixons Carphone was voted 'Retailer of the Year' at
the Retail Week Awards 2016.
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Certain statements made in this announcement are
forward-looking. Such statements are based on current expectations
and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from any expected future
events or results referred to in these forward-looking statements.
Unless otherwise required by applicable laws, regulations or
accounting standards, we do not undertake any obligation to update
or revise any forward-looking statements, whether as a result of
new information, future developments or otherwise. Information
contained on the Dixons Carphone plc website or the Twitter feed
does not form part of this announcement and should not be relied on
as such.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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