Dixons Carphone has reported double-digit growth in the UK, as customers snapped up pricey hi-definition TVs.
The electronics and phone retailer told the City profits were likely to exceed its earlier expectations, in a trading statement coming a year after a merger that brought together two high street chains, Dixons and Carphone Warehouse.
Revenues at Dixons Carphone rose 9% for the three months ending 2 May, boosted by promotional deals offered over Easter. Revenues for the full year were up 6% on last year.
The company is now forecasting pretax profits slightly above £375m, beyond previous expectations.
Revenues in the UK and Ireland were up 13%, with the company gaining market share in electricals and mobile phones. The chain also reported an improving performance in southern Europe, with a strong performance in Greece, although Spain remains “tough”.
Sales in the FTSE100 retailer rose 1.2% to 484 pence when the stock market opened.
Sebastian James, the Dixons Carphone chief executive, said the company was selling well “across the board”, but singled out ultra hi-definition TVs that can sell for £800 to £2,400. “People really seem to be taking these new ultra-definition TVs to their hearts,” he told BBC Radio 5 Live.
Dixons Carphone is also promising to invest more in its business and highlighted training staff, upgrading IT systems and extending its free warranty programme for further spending.
“It is a truism that the time to fix the roof is when the sun is shining, and we will pursue continued investment in the business this year to do just that,” James said. “We are making excellent progress but there is still much to do, and many areas of the business that we want to improve further.”
He suggested the company would also be spending money on bringing down prices. He said: “I want to make sure that – no matter who you compare us with - customers get a good deal and that costs money as well.”
One year into the £3.8bn merger, James said: “Our marriage is going well – we have sort of worked out who is taking out the bins and who is doing the washing up.”
