12th Jan 2005 07:00
Dixons Group PLC12 January 2005 PR 03/2005Strictly embargoed.For release after 07.00 hours12 January 2005 DIXONS GROUP plc CURRENT TRADING AND OUTLOOK Dixons Group today issued the following update on trading for the 8 weeks ended8 January 2005. All sales figures are based on local currency performance. 8 weeks ended 4 weeks ended 8 January 2005 8 January 2005------------------------- --------- --------- --------- --------- Total Like for like Total Like for like growth growth growth growth------------------------- --------- --------- --------- ---------Currys (UK) 6% 6% 8% 8%Dixons (UK) (14%) 9% (14%) 10%Ireland 6% (2%) 6% (3%)Elkjop (Nordic) 17% 6% 14% 7%UniEuro (Italy) 1% (9%) 10% (3%)Electro World (Hungary & Czech Republic)(2) 65% N/A 59% N/APC World(UK)(1) 6% (7%) 9% (3%)PC City (Spain, France, Italy,Sweden)(2) 48% N/A 46% N/AThe Link (UK) 7% 0% (3%) (9%)------------------------- --------- --------- --------- ---------Total Group (3) 9% 1% 10% 3%------------------------- --------- --------- --------- --------- Total UK Businesses 2% 2% 2% 3%Total International Businesses 29% (1%) 29% 2% NOTES(1) Total sales of PC World include PC World Business. Like for like sales are PC World retail only.(2) The store base for like for like sales for both Electro World & PC City is not significant.(3) Total Group sales include a first time contribution from Kotsovolos (Greece). Group gross margins were down versus last year in line with that experienced inthe first half. This was primarily as a result of lower credit commissions,higher business to business sales, product mix and higher internet sales. John Clare, Chief Executive, commented on the eight weeks trading up to 8January, as follows: "As anticipated in November, we had planned for a challenging tradingenvironment in the UK throughout the peak period. The Group competed robustly inthe marketplace delivering overall like for like sales growth. The majorpromotional activity, product propositions and the business operations,including a major new branch system, all worked well. The January sale has started well. In our international businesses, Elkjop, Electro World and PC City all performedwell, but sales were disappointing in UniEuro." UK TradingCurrys and Dixons sales were strong, driven by internet audio products, digitalimaging, flat panel televisions and portable DVD players. Sales of gamesconsoles were restricted by the industry-wide supply chain issues with PS2 andX-box. A 7% increase in unit sales of desktop and laptop computers failed to fullyrecover the decrease in their average ticket prices and resulted in sales in PCWorld being below forecast. Total sales in the Link were up 7% year on year with like for like sales flat.Internet sales were particularly strong (+70%). International TradingElkjop delivered a good sales performance and a robust margin performance acrossall Nordic countries. Sales of digital products were particularly strong and theJanuary sale has started well. In UniEuro a strong performance from new store openings helped total salesincrease by 1% versus last year in difficult market conditions. However like forlike sales were down 9%. Some older smaller stores in particular did not performwell and the Group expect either to close or resite many of these into largerspace over time. Disappointing sales in Ireland were offset by a strong margin performance. Elsewhere, the Group's investment businesses, PC City and Electro World,performed in line with expectations as did the new acquisition, Kotsovolos, inGreece. OutlookFour months of the financial year remain, including an important peak forbusiness sales. The Group remains cautious about the prospects for consumerexpenditure, particularly in the UK and Italy. At this stage the Groupanticipates a year end outcome in line with current expectations. - ENDS - Maylands Avenue John ClareHemel Hempstead Group ChiefHertfordshire ExecutiveHP2 7TG 12 January 2005------------------------------------------------------------------------------------------------------------------------ For further information:John Clare Group Chief Executive 020 7499 3494Kevin O'Byrne Group Finance Director 020 7499 3494Hamish Thompson Head of Press & PR 01727 203195------------------------------------------------------------------------------------------------------------------------ Information on Dixons Group plc is available at http://www.dixons-group-plc.co.uk------------------------------------------------------------------------------------------------------------------------ An audio webcast of the analyst presentation being held this morning will beavailable at http://www.dixons-group-plc.co.uk (click "investors", then"presentations") from 10.00am today. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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