Dixons delivers 10 per cent rise in Q4 sales

Dixons Retail, the FTSE 250 electrical retail, posted a 10 per cent rise in fourth quarter total growth, up four per cent for the full year as a whole.

Within this, its multi-channel businesses delivered a 7.0% rise in like-for-like sales in the 12 month period ended April 30th, boosted by an an 11% rise in the fourth quarter.

Regionally, the UK & Ireland posted a 13% rise in fourth quarter like-for-like sales growth, and 7.0% for the full year.

In northern Europe like-for-like sales were up 7.0% for the full year, and down 8.0% in southern Europe.

The group's PIXmania business continued to be "very challenging", and as such the company took full management control on the business in August, and subsequently conducted a restructuring, which included exiting from almost half of the countries in which it operates, closure of all stores, exiting non core categories and significantly reducing headcount.

Full year like-for-like sales plunged 36%, and 24% in the final quarter.

Sebastian James, the group's Chief Executive, said: "This strong year puts Dixons in the best position it has been in for many years. We have worked hard to improve the conversation that we have with our customers and to improve our shops and our prices. This is paying off as customers increasingly choose us when they need electrical products, and - more importantly - tell us that they like what we are doing.

"I believe that we have a clear business model that allows us to flourish in an internet world. I am very pleased to see us gaining share in nearly all of our multi-channel businesses across Europe and could not be more excited or proud to be part of this team.

"It has been a busy time with the start of a profound restructuring of parts of the portfolio, major changes in the competitive landscape, significant cost savings achieved and with the continued drive to transform our stores.

"But there is still lots to do - we are continuing with more customer initiatives across our brands, on-line and in all of our services operations to make Dixons an even better place to shop.

"We remain steadfastly focused on sorting out our businesses in more challenged markets and in particular Pixmania. Above all we are enjoying the feeling of a little wind in our sails and we want to make sure that, in spite of continued economic uncertainty, this carries on into next year and beyond."

The share price leapt 7.64% to 39.30p by 11:10 Thursday.

NR