22nd May 2014 12:49
LONDON (Alliance News) - Electrical products retailer Darty PLC Thursday said its overall group gross profit margin was flat in the final quarter of its financial year, hit by promotional discounting, while revenues and like-for-like sales in its core French business were flat with a decline in gross margin.
Darty said that sales in the three months to April 30 were up 0.1% in euros, up 0.3% in local currency, and down 0.8% on a like-for-like basis, largely due to a significant sales decline in its Czech Republic and Slovakia businesses, as well as weakness in Belgium and the Netherlands.
Darty said that online sales continue to grow, representing over 13% of total product sales in the fourth quarter.
In France, the group's core market, it said it continued to strongly outperform the market in the fourth quarter, with market share gains in all major product categories. However revenue from the French business was up only 0.8% in the period, and flat on a like-for-like basis. Its gross margin was down 40 basis points.
Despite a 0.2% fall in revenues in the fourth quarter from Belgium and the Netherlands, Darty said its Vanden Borre chain in Belgium is outperforming the market, while the BCC chain in the Netherlands is holding market share amid high promotional activity and a difficult market.
Last month, Darty said that its French subsidiary, Etablissements Darty et Fils, known as Darty France, acquired French website Mistergooddeal.com, a French deals website, from M6 Group in a EUR2 million cash deal.
Last year, the company also sold its Turkish operations to Turkey-based specialist technology retailer Bimeks, the same group that agreed to buy the ElectroWorld chain in Turkey from Dixons Retail PLC for GBP2 million in cash.
The group said it will release its full year results on June 19.
Darty shares were trading 2.6% lower at 92.50 pence Wednesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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