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.

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

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021