Dixons, Currys and PC World chains making a loss

by liamssoft | November 24, 2011 at 02:39 am

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DSG International, home to Dixons and the Currys and PC World chains in Britain, and Europe's No.2 electrical goods retailer, said it made a loss before tax and one-off items of 25.3 million pounds in the 24 weeks to October 15, as market share gains helped it to limit the impact of weak consumer spending, and cut-throat competition from internet retailers and supermarkets, and eased fears about its financial position. The chain also put a £4m figure on the UK summer riots, which mainly involved "stock write offs and repair costs to damaged properties".

That compared with a loss of 6.9 million pounds the same time last year, but was ahead of analysts' average forecast for a loss of about 30 million pounds.

Sales at stores open over a year fell 3 percent in the second quarter, improving on a 7 percent drop in the first

Dixons, which also runs UniEuro in Italy, Kotsovolos in Greece and Elkjop in the Nordic countries, said net debt fell over 70 million pounds to 143 million.

The group's shares, which slumped to a three-year low of 9.245 pence on Wednesday amid concerns over its financial position, had bounced 11 percent to 10.43 pence by 0930 GMT.

Browett estimated like-for-like sales in Europe's electricals goods market fell 7-8 percent in the first half of its financial year, compared with Dixons' decline of 5 percent. uk.reuters.com