Electrical retailer Darty, formerly Kesa Electricals, found trading tough in the first half and expects market conditions to remain challenging, although it expects to benefit from weaker comparatives in the second half.
In a trading update for the period from May 1st to October 31st the company, which is without a Chief Executive following his resignation after a shareholder revolt over directors' pay, said that total revenues fell by 2.2% in euros, 2.3% in local currency and by 1.7% on a like-for-like basis.
The worst performing business was Darty France, where revenues dropped 3.9%, while its developing businesses (Darty Italy, Darty Turkey and Darty Spain) also saw revenues fall 2.6%.
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In contrast, its established businesses (BCC, Vanden Borre and Datart) grew revenues by 3.7%.
Given that gross margin was also down 100 basis points, albeit "with an improved trend in the second quarter", it will certainly require a strong second half to avoid further disappointment for Kesa's long-suffering shareholders.
It will issue its half year results on Wednesday, December 12th.
CM
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