Dixons Carphone had a record trading day on Black Friday as the electrical retailer said it had seen no impact from the Brexit vote and shrugged off concerns that 2017 will be a tough year for UK consumers.
Google Chromecast, televisions and tablets were among the best sellers on the discount shopping day in November that began in the US but has been adopted in the UK in recent years.
Sales of smart fitness gadgets were up 241% year on year, while dashcam sales rose 250%, drone sales were up 60%, and virtual reality sets rose tenfold.
Reporting results for the first half of the financial year, the retailer said the EU referendum result had not put consumers off from spending, but added it was prepared for potential volatility ahead.
Seb James, the Dixons Carphone chief executive, said: “We remain optimistic about our ability to continue to gain market share in all our key markets, and, while we have still not seen any effect on consumer demand as a consequence of Brexit, we have been planning for the possibility of more uncertain times ahead.
“We have been focusing on reducing our fixed cost base ... and generally preparing for all eventualities – just in case.”
The company reported an 11% rise in revenue to £4.9bn in the first half of the year ending on 29 October. Pre-tax profit increased by a third to £104m. Like-for-like sales – stripping out the impact of stores open for less than a year – rose by 5% in the UK, 7% in southern Europe and 2% in the Nordic countries.
However, shares fell nearly 4% despite the upbeat message, making Dixons Carphone the biggest faller on the FTSE 100.
Humphrey Singer, the finance director, said he expected a “great” Christmas trading period and was not worried about prospects for the business in 2017. Economists have predicted that next year will be a difficult one for consumers amid rising inflation, weak wage growth, higher unemployment and low growth.
“We’ll make our luck and will be successful regardless of the economic background. It’s sensible to have a set of contingencies to make sure you’re flexible and ready for any scenario. But we’re not doing anything differently,” Singer said.
The retailer said it had not been hit by the sharp drop in the value of the pound since the Brexit vote in June, because more than 90% of its purchases are made in sterling.
The retailer was formed from a merger of Dixons and Carphone Warehouse in 2014 and currently trades as Carphone Warehouse, Currys and PC World.
