Dixons Carphone maintains guidance as mobile sales fall 10%

(Sharecast News) - Retailer Dixons Carphone reported a sharp fall in first quarter mobile phone sales, offset by a rise in household electricals as it maintained full year guidance.
Mobile phone like-for-like sales were down 10% in the 13 weeks to July 27 in a "challenging postpay market" as consumers continued to shun new phone purchases, buying unlocked handsets or sim-only deals instead of regularly upgrades.

"The current political and economic climate is volatile but, assuming no material disruption from that, we stand by our full year guidance, as we do our longer-term commitments on earnings before interest and tax margin and cashflow," said chief executive Alex Baldock.

"The mobile market is as challenging as expected, underlining the need for the decisive actions that we set out in June. We remain committed to growing electricals sales and headline profits in UK & Ireland and international this year, and to this being the trough year for mobile losses."

Like-for-like sales in UK electricals rose 2%, as fridges, washing machines, tablets and gaming offset lower growth in television sales compared with the boost provided by the football World Cup last year.

International revenue was up 4% while online sales grew 14%. Overall group like-for-like sales were flat