Comet set to make a loss

Electricals group Kesa said today it expected its flagship UK chain to slump into the red amid growing woe on the high street.

Kesa said stereos-to-fridges retailer Comet was likely to make “a small loss” in the first half.

It said Comet’s turnover fell by 1.6% in the three months to April 30 as soft trading at the start of the year continued in the period and worsened in April.

Particularly poor sales of white goods such as fridges had significantly affected margins, although sales of digital products continued to be good.

Chief executive Jean-Noel Labroue said the group’s French electrical retailer Darty and its other continental European businesses had achieved satisfactory sales in the quarter.

But he added: “Comet’s performance in the first quarter reflects the difficult market conditions in the UK.

“The company has already reduced its cost base and will take further action if these conditions persist.”