Dixons announces 2% rise in Christmas sales

Electricals group Dixons announced a 2% rise in Christmas sales after strong performances from its Currys and Dixons chains in the UK.

Dixons owns 15 Dixons, Currys and PC World stores in Ireland.

The group described the trading environment as challenging but said strong demand for digital cameras, plasma televisions and internet audio products such as iPods had helped sales figures at its two frontline chains.

Currys produced like-for-like sales growth of 6% in the eight weeks to January 8, while the figure for Dixons was up 9% following a refit programme and a recent move to close smaller, under-performing stores.

PC World sales were below forecast at minus 7%, after the weak dollar caused a fall in computer prices, and mobile phone chain The Link posted flat figures.

The company said it remained cautious about prospects for consumer spending but added that it expected full-year results in line with market hopes.

Half-year results for the 28 weeks to November 13 – also announced today - showed profits before exceptional items rose 15% to £127.5m (€182.3m).

As well as the four UK chains and its outlets in Ireland, Dixons Group has retail businesses in a number of other European countries, including Italy and France.

Group sales from continuing operations rose by 9% to £3.4bn (€4.9bn) in the half year, with the growth including a like-for-like gain of 6% in the UK.

Nick Bubb, a retail analyst at Evolution Securities, said the figures came as a relief after Dixons warned in November that it was braced for a tough Christmas.

He added: “Currys was not hurt at Christmas by the mooted price-war in big-ticket electrical items with Argos and Comet and there was a good recovery in the Dixons chain itself.”

In today’s results, Dixons said margins continued to be lower on a year earlier, mainly because of the willingness of customers to settle accounts at the end of interest-free periods, and a change in the product mix.