Dixons Carphone share price rises two per cent as it hails strong start to the year
Dixons Carphone is still going from strength to strength, as it consolidates its position in the sector following last year's merger. Dixons Carphone share price rose two per cent in mid-morning trading on the news.
Dixons Carphone reported group like-for-like revenues up eight per cent for the first quarter of the year ending 1 August, compared to the same period a year ago. This was led by the UK and Ireland, where the company reported like-for-like revenues up 10 per cent.
In the Nordics, like-for-like revenue was up four per cent, compared to a year ago.
Why it's interesting
The sector has been challenging, with rivals falling by the wayside, but after the merger Dixons Carphone is fighting fit. A year on from Dixons and Carphone Warehouse joining forces, the company said it had made "good headway against our competitors, both on and offline".
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Retails such as Dixons Carphone have been under threat from the likes of Amazon, but today’s reported revenue continues to indicate the company is able to fight off the threat.
The company was given a boost earlier this year when its share price rose after announcing expansion to the US in combination with Sprint, where it will open 500 stores.
Work has started well on “our new venture with Sprint in the US and we are opening our first stores next week. The integration is also going smoothly with our UK head-office move on track and the new management structures in place and working well," the company said.
What Dixons Carphone said
Sebastian James, group chief executive, said:
We have continued to see improvements in customer satisfaction and price competitiveness through the period and across all our major territories. Our Nordic business has also experienced decent growth overall against a slightly less buoyant market backdrop.
Our multi-channel proposition continues to make good headway against our competitors, both on and offline, and we continue to invest in those areas that will ensure our long term profitability: service, delivery options, expansion of free warranty, digital marketing and Norwegian price competitiveness.
Overall, a very good start to the trading year but I am aware that there is plenty of the year left to go. In the next quarter we will anniversary the startlingly successful iPhone6 launch, the consolidation of the mobile market and, later in the year, an extraordinary Black Friday. Nevertheless, our whole team believes that the business is in very good shape to have another successful year, and I look forward to giving a further update at the interims in December.
Dixons Carphone good shape with revenue rising across the board and expansion to the US on track.