DXNS.L Share News (DXNS)

(Sharecast News) - Dixons Carphone said trading was strong in the runup to Christmas despite store closures as the electricals retailer reported surging online sales.
The company swung to a pretax profit of £45m for the six months to the end of October from a loss of £86m a year earlier as revenue rose 3% to £4.86bn. Adjusted pretax profit surged to £89m from £2m. Dixons declared no interim dividend.

Annual online sales more than doubled to £1.8bn as shoppers switched to the internet during the Covid-19 crisis. Online sales in the UK and Ireland surged by 145%, or almost £800m, offsetting lost sales from store closures.

The owner of Currys and PC World said trading in the first few weeks of the current year remained strong. In the six weeks to 12 December like-for-like electricals sales rose 16%.

The company's shares rose 11.5% to 121.10p at 08:14 GMT. The shares hit their highest value since the end of February.

Chief Executive Alex Baldock said: "Sales have been strong across all electricals markets as we helped customers choose, afford and enjoy the vital technology we sell to keep them connected with loved ones, their families fed, clean and entertained, to work from home and home-school their children."

At the start of the pandemic Dixons sold lots of TVs and fridges but as customers spent more time at home sales of items such as food processors and fitness trackers increased. Laptop, tablet, gaming and other computers had very strong sales throughout the period, Baldock said.

Dixons stuck to its guidance for the current year and the medium term. Baldock said the short-term outlook was uncertain including the possibility of more store closures and disruption from Brexit.