DIXONS RETAIL 
By 7.00am, 17 January 2013
Dixons Retail plc, Europe's leading specialist multi-channel electrical retailer and services company, today announces trading for the 12 weeks ended 5 January 2013.· A strong performance over the Christmas period with like for like sales in key businesses up 7% as we continued to gain market share:
· UK & Ireland traded well with like for like sales up 8%;
· Continued strong performance in Northern Europe with like for like sales up 11%;
· Single-channel business PIXmania had a poor period impacted by the ongoing restructuring of the business, compounded by significant negative trends in its main markets.
· Progress continues on the restructuring plan to improve the financial position of the business.
· Group gross margins down 0.5%, primarily driven by product mix.
· Group Full year underlying profit before tax expected to be in line with market expectations of £75 million to £85 million.
| 12 weeks ended 5 January 2013 | |||
| Underlying Sales | Total growth Sterling | Total growth Local currency | Like for like growth |
UK & Ireland | +7% | +7% | +8% |
Northern Europe Nordics & Central Europe | +7% | +9% | +11% |
Southern Europe Italy, Greece, Turkey | (6)% | (2)% | (8)% |
Total multi-channel business | +5% | +6% | +7% |
Single channel business PIXmania | (28)% | (25)% | (25)% |
| Total Group | +2% | +4% | +3% |
Sebastian James, Chief Executive, commented:
"Our key multi-channel businesses delivered an encouragingly strong result during the Christmas period, particularly in the UK & Ireland and in Northern Europe. Customers continue to respond to our excellent range of products, compelling offers, seamless approach to multi-channel and improving service levels, and we continue to benefit from capacity exiting these markets. In Italy and Greece I was pleased to see our businesses trading ahead of weak local markets and continuing to manage profitability robustly. Tablet sales were phenomenal across our markets, which was good to see but which impacted overall headline margins somewhat. White goods were also strong, particularly in the UK.
The single-channel operation PIXmania was disappointing, but we are making good progress on our restructuring plans which are designed to put the business on a better financial footing.
In the year ahead, while we will manage our cost base cautiously, we see many opportunities to improve the overall performance of our Group through further developments in our service offer for customers, sharing best practice, controlling costs and focusing on multi-channel growth."
- Ends -
For further information
David Lloyd-Seed, IR, PR & Corporate Affairs Director, Dixons Retail 01727 205065
Mark Webb, Head of Media Relations, Dixons Retail 01727 205019
Tom Burns, Nick Cosgrove Brunswick 020 7404 5959
Investors & Analysts Conference Call
Sebastian James and Humphrey Singer will host a conference call for Investors and Analysts at 8.45am:
Dial in number: +44 (0) 1452 555 566
Conference call ID 86293810
A replay facility will be available after the call using the following details:
Dial in number: +44(0) 1452 550 000
Conference call ID 86293810
Information on Dixons Retail plc is available at http://www.dixonsretail.com
NOTES:
1) Like for like sales are calculated based on stores that have been open for a full financial year both at the beginning and end of the financial period and are calculated using constant exchange rates. Customer support agreement sales are excluded from all UK like for like calculations. Operations that are subject to closure have sales excluded as of the announcement date. Stores closed for refurbishment are excluded during the period of closure. All PIXmania store sales are included in like for like sales.
2) Throughout this statement, references are made to 'underlying' sales. Underlying sales are defined as excluding trading results from closed business, which comprises the operations of PC City Spain.
3) UK & Ireland comprises Currys, CurrysDigital, Dixons Travel, PC World, combined 2-in-1 Currys and PC World, Harrods concession, operations inIreland, DSGi Business, Dixons.co.uk (closed in October 2012), and Knowhow. Like for like sales exclude DSGi Business.
4) Northern Europe comprises the Elkjøp group, Dixons Travel Denmark and ElectroWorld in the Czech Republic and Slovakia.
5) Southern Europe comprises Greece (Kotsovolos), Italy (Unieuro, combined 2-in-1 Unieuro and PC City stores and Dixons Travel Italy), and Turkey (ElectroWorld).
6) Movements in the financial position, including levels of borrowings, of the Group since the last balance sheet date are reflective of the trading performance and statements outlined above. Other than this, there have been no significant changes in the financial position of the Group.
7) 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.
This information is provided by RNS
RNS news service provided by Hemscott Group Limited.
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