21 Jan 2020 13:40
The following amendment has been made to the '2019/20 Peak Trading Statement' announcement released on 21 January 2020 at 07:00 under RNS No 3795A.
Due to a clerical error, the previous version of the announcement showed Group Reported sales growth as "2%", the correct growth is now shown as "-2%"
All other details including Group local currency and like-for-like sales growth remain unchanged.
The full amended text is shown below.
21 January 2020
Trading Update for 10 weeks ended 4 January 2020
Strong performance in sales, market share and customer satisfaction
·; UK & Ireland Electricals like-for-like revenue +2%
o Broad based growth with strength in TVs, Gaming, Smart Tech and Small Domestic Appliances
o Accelerating market share gains in-store and online, against market down over -3%
o Online growth +7%
o Margin investment in improved customer proposition and unambiguous price promise
·; International like-for-like revenue +3%; Nordics +3%, Greece +6%
o Good growth in Domestic Appliances and Kitchens
o Growing market leading position in Nordics, Norway and Finland particularly strong
o International online growth +5%
o Margin supported as customer club members drove better in-store sales
·; UK & Ireland Mobile like-for-like revenue -9%
o Performance in line with expectations
·; Strategic initiatives progressing well
o Online / Multichannel: UK&I online-in-store sales +140%. Nordics click & collect +22%
o Credit: UK&I Electricals credit penetration up >3%pts, transactions on credit +40% yoy
o Services: Increased adoption of set-up and protection services
o Mobile: On track to launch new mobile offer in H1 2020/21
·; On track to meet targets - no change to financial guidance given at Interim results
Alex Baldock, Group Chief Executive
"We've had a good Peak in a weak UK market and we're on track to deliver what we promised for this year, and with our longer-term transformation.
Peak saw us continue to invest in our strategic initiatives with encouraging results. Credit and services adoption rates increased, online sales grew strongly, and our newly remodelled stores performed well. Coupled with our unambiguous "You won't get it cheaper. Full stop" price promise, alongside better availability and delivery, this led to big improvements in customer satisfaction and strong market share gains in Electricals.
Our customers loaded up on amazing technology this Christmas. The supersizing TV trend kept on giving as we sold 75% more 65"+ TVs, Dyson Health & Beauty sales were up over +20%, Shark Vacuum sales almost doubled and we sold 8,000 smart speakers each day. We broke records on wearables like Fitbit and Apple Airpods, while gamers couldn't get enough of the Nintendo Switch. Our new Gaming Battlegrounds showed the exciting potential of more enticing, immersive store experiences and drove strong sales and share gains.
None of this would be possible without our thousands of capable and committed colleagues who work hard to deliver a great customer experience every day. I cannot thank them enough as together we continue to unleash Dixons Carphone's potential."
Peak 2019/20 revenue | Reported | Local currency | Like-for- like |
UK & Ireland Electricals | 1% | 1% | 2% |
International | -1% | 4% | 3% |
- Nordics | -1% | 3% | 3% |
- Greece | 3% | 7% | 6% |
Electricals | 0% | 2% | 2% |
UK & Ireland Mobile | -11% | -11% | -9% |
Group | -2% | 0% | 0% |
All guidance is based on assumption of no major macro-economic changes, for example no material impact from Brexit, and the profit numbers also exclude any significant revaluation in network debtors, up or down, which might arise from changes in the regulatory environment or for other reasons. It is also before implementation of IFRS16.
Investor and analyst call
There will be a conference call for investors and analysts at 8.30am GMT this morning.
Dial-in details - UK/International: +44(0) 20 3936 2999; passcode: 804494
Seven-day replay - UK/International: +44(0) 20 3936 3001; passcode: 092123
Next announcement
The Group will publish its full year results on Thursday 25 June 2020.
For further information
Assad Malic | Group Strategy & Corporate Affairs Director | +44 (0)7414 191044 |
Dan Homan | Head of Investor Relations | +44 (0)7400 401442 |
Amy Shields | Head of External Communications | +44 (0)7588 201442 |
Tim Danaher, Alice Gibb | Brunswick Group | +44 (0)207 404 5959 |
Information on Dixons Carphone plc is available at www.dixonscarphone.com
Follow us on Twitter: @dixonscarphone
About Dixons Carphone
Dixons Carphone plc is a leading multichannel retailer of technology products and services, operating through 1,500 stores and 16 websites in eight countries. We Help Everyone Enjoy Amazing Technology, however they choose to shop with us.
We are the market leader in the UK & Ireland, throughout the Nordics and in Greece, employing 42,000 capable and committed colleagues. Our full range of services and support makes it easy for our customers to discover, choose, afford and enjoy the right technology for them, throughout their lives. The Group's core operations are supported by an extensive distribution network, enabling delivery to stores and homes, a sourcing office in Hong Kong and a state-of-the-art repair facility in Newark, UK.
Our brands include Currys PCWorld and Carphone Warehouse in the UK & Ireland and iD Mobile in the UK; Elkjøp, Elgiganten and Gigantti in the Nordics; and Kotsovolos in Greece. Our Dixons Travel brand has a presence across several UK airports as well as in Dublin and Oslo, and our services are provided through Team Knowhow.
Certain statements made in this announcement are forward-looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Information contained on the Dixons Carphone plc website or the Twitter feed does not form part of this announcement and should not be relied on as such.