10th Sep 2015 07:21
LONDON (Alliance News) - Darty PLC Thursday reported a drop in revenue in the first quarter of its financial year as sales took a hit following the integration of recently-acquired Mistergooddeal.com, but the company said that it is approaching break even as the year progresses.
The European electrical goods retailer said that total sales in the three months to July 31 fell 0.2% on the same period the year before, while like-for-like sales excluding Mistergooddeal.com declined 0.3%.
Regionally, France delivered 1.1% growth in like-for-like sales excluding Mistergooddeal.com, but saw a 0.4% drop in total revenue, while Belgium and the Netherlands posted a 5.0% decrease in like-for-likes excluding Mistergooddeal.com but a 0.5% rise in total revenue.
Darty said that the integration of Mistergooddeal.com, which it acquired towards the end of its last financial year, will continue to negatively hit its sales performance although it said it is on track to be approaching break even in the current financial year.
Darty added that its underlying gross margin improved by 30 basis points in the first quarter and by 60 basis points in France, and that it delivered a EUR65 million year-on-year reduction in net debt at the end of July.
"Whilst our markets remain challenging, particularly in multimedia, we were well prepared for the "back to school" period with better product availability than last year and we are now seeing strong vision sales ahead of the rugby World Cup. With trading momentum in France, continuation of our growth and cost initiatives plus an improving average cash position we are well placed for the rest of the year," Régis Schultz said in a statement.
Shares in Darty were untraded Thursday at the open, last quoted at 74.50 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
DRTY.L