Dixons Carphone enjoys 7% boost in Christmas sales

<p>Dixons Carphone has spoke of a “rollercoaster” Christmas trading period.</p>

Dixons Carphone enjoyed a seven per cent boost in like-for-like sales over the traditionally busy Christmas period.

The company, formed through a merger of Currys, PC World and Carphone Warehouse in 2014, explained that the festive period was somewhat of a "rollercoaster" but it had performed well overall. Like-for-like sales grew during the nine weeks to January allowing the firm to predict higher-than-expected profit of between £355 million and £375 million for the full year, up from the previous forecast of £354 million.

Following its merger in August, Dixons Carphone stated in September that it had made "a good start" to life as a new entity. Sebastian James, group chief executive, explained at the time that the company looked to be "in excellent shape" to take on any challenges that could occur during its lifetime.

Like a number of other retailers, Dixons Carphone was boosted by the emergence of a special shopping events such as Black Friday and Cyber Monday. Mr James said that the success of the company's Black Friday promotion had an effect on the following three weeks in the build-up to Christmas. However, customers were said to have responded well to the Boxing Day deals.

Mr James added: "The strange shape of this year’s Christmas trading was something of a roller-coaster but I am very pleased with the end result.

"In all of our largest trading markets we have excellent like-for-like performance against fairly tough comparables. At the same time, we have also experienced stable gross margin."

Dixons Carphone managed to perform well over the Christmas period when many other retailers had faltered. The supermarket sector has bore the brunt of poor performance with the likes of Tesco, Morrisons and Sainsbury's all reporting drops in sales. Waitrose, in contrast, enjoyed a positive Christmas period with a boost in sales.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.