Large screen TVs, gaming consoles and SIM-free phones were behind demand for shares in Dixons Carphone (DC.) on Monday.
That helped drive a 6% rise in sales year-on-year over the 10 weeks to 6 January trading period. The news pushed shares in the FTSE 250 electronics retailer almost 5% higher in early trade to 196.9p.
The group is also able to narrow its guidance range for pre-tax profits this year, to 30 April 2018. The company now says that investors can expect between £365m to £385m, as opposed to the much larger range of 360m to £400m previously.
That tallies with consensus estimates which calls for a bang in the middle £375m of that range.
‘Although the weaker trend in UK electricals after Boxing Day was disappointing, overall trading was solid and consensus FY18 forecasts are unchanged,’ commented analysts at Numis Securities today.
Reading between the lines, investors seem pleasantly surprised that trading was not far worse for Dixons Carphone. The market has been shocked by disappoints recently at Debenhams (DEB) (read here) and Mothercare (MTC) (read here) . Other retailers have also struggled.
IPHONE X DEMAND BOOST
Apple's iPhone X was highly sought after and more people are apparently been switching to flexible SIM-free phones. This helped to increase the electrical retailer’s market share and boost sales by 8%.
In the UK and Ireland, Boxing Day sales failed to live up to the Black Friday hype, with like-for-like sales over the Christmas period up 3%.
Overseas, Dixons fared much better, delivering 23% revenue growth in Greece and 11% more sales in the Nordics.
WHY NEW CEO COULD SPARK GROWTH
Chief executive Sebastian James has announced his departure in favour of Walgreens Boots Alliance, with Alex Baldock set to fill his shoes.
Baldock was responsible for the digital transformation of Shop Direct and has the potential to drive Dixons into the future.
He could achieve this by cutting stores and focusing on online to reach consumers that are shunning the high street to buy online.
