17th Jan 2007 07:01
DSG International PLC17 January 2007 PR 07/07 Strictly embargoedFor release after 07.00 hours17 January 2007 DSG INTERNATIONAL plc CURRENT TRADING AND OUTLOOK STATEMENT DSG international plc is today updating the market on trading for the 8 weeksended 6 January 2007. Trading highlights: •Total Group sales up 14% and like for like sales up 3%. •Total sales in the UK up 4% and like for like sales up 3%. •Total international sales up 33% and like for like sales up 3%. •Strong start to the Winter Sale in all countries. •Internet sales represented 10% of total Group sales over the period. •Like for like gross margins across the Group were down 0.7% versus last year. 8 weeks ended 6 January 2007 Sales Total growth Like for like growth------------------------- ------------- ------------- ------------------------- ------------- -------------Computing Division +7% +3%------------------------- ------------- ------------- UK Computing - PC World +6% +5% International Computing - PC City +15% n/a ------------------------- ------------- -------------Electricals Division +9% +2%------------------------- ------------- ------------- UK & Ireland Electricals +2% +1% Currys +1% +1% Ireland +34% +8% Nordic - Elkjop +32% +11% Southern Europe +4% (4)% UniEuro 0% (7)% Kotsovolos +15% +5% Central Europe - Electro World +31% n/a ------------------------- ------------- -------------New Businesses Division n/a +134%------------------------- ------------- ------------- ------------------------- ------------- -------------Total Group +14% +3%------------------------- ------------- ------------- John Clare, Group Chief Executive, commented: CURRENT TRADING "Across Europe, high definition flat panel televisions and laptop computers soldvery well with iPods and other digital technology products continuing to be verypopular Christmas gifts. In the UK, sales of televisions and laptops were also strong throughout theperiod. PC World delivered a good sales performance across the period and iswell positioned for the launch of Windows Vista at the end of this month. In theearly pre-Christmas gift period Currys' sales were disappointing, as corehigh-ticket categories reduce as a proportion of the product mix, Currys didhowever benefit from the late Christmas rush, and has subsequently had a strongstart to the Winter Sale. Currys maintained gross margins over the whole peak period. For the three week period to 13 January 2007 Currys' like for like sales were up 8%. In our international operations, I was very pleased with the sales performancein our businesses in the Nordic countries, Ireland, Greece, Central Europe andSpain. Italy and PC City France remained disappointing. There are some veryearly signs of an improving performance in Italy, while the Winter Sale inFrance only began on 10 January. However the overall performance across theperiod in both countries means that we are now unlikely to deliver ourexpectations in those markets in this financial year. The total Group e-commerce performance was very encouraging, with strong salesgrowth from both our pure-play and multi-channel retail web sites. Total onlinesales now account for 10% of Group sales. Pixmania delivered good growth, inline with our expectations, with a particularly strong performance in its homemarket of France. The sales performance of Dixons.co.uk exceeded ourexpectations." OUTLOOK "We expect to be able to deliver good progress in most of our major businessesthis year, however, progress on last year's underlying profit before tax will beoffset by the very disappointing year in Italy. There are still four months oftrading ahead of us in the current financial year. While the impact of higherinterest rates and taxes on our customers' discretionary expenditure isuncertain, there is an exciting product pipeline, which will offer opportunitiesin all our markets and I am encouraged by the strong start to the Winter Saleperiod in all countries." NOTES: (1) The change in total sales for the Divisions and the Group are in Sterling and exclude discontinued operations. All other figures are in local currency. (2) Like for like sales in the UK exclude sales of customer support agreements. (3) Currys comprises Currys, Currys.digital and Dixons Tax Free. (4) UK Computing comprises PC World, PC World Business, Genesis Communications and The TechGuys. Like for like sales are for PC World stores only. (5) The numbers of PC City and Electro World stores trading are insufficient for a meaningful like for like comparison to be made. (6) New Businesses Division total sales growth is not meaningful due to the acquisition of FotoVista. Like for like sales are for Dixons.co.uk only. - ENDS - For further information: David Lloyd-Seed Group Director of Investor 01727 205 065 Relations Hamish Thompson Director of Media Relations 01727 203 195 / 07702 684 290 Jonathon Brill Financial Dynamics 020 7269 7170 --------------------------------------------------------------------------------Information on DSG international plc is available at http://www.dsgiplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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