Dixons Carphone sales soar 10% despite fears of UK consumer spending slowdown

Other retailers have been sounding the alarm over the squeeze from Brexit-fuelled inflation

Bottom-line pre-tax profits rose 47 per cent to £386m, while group-wide like-for-like sales lifted 4 per cent (Reuters)

Electricals giant Dixons Carphone has batted away fears of a consumer spending slowdown as it said high street conditions were “holding up” following a 10 per cent leap in annual profits.

The group reported underlying pre-tax profits of £501m for the year to 29 April, up from £457m the previous year.

Like-for-like sales rose 4 per cent in the UK and Ireland, although Dixons said around 3 per cent of this rise was thanks to sales transferred from closed shops as part of a store overhaul.

Finance boss Humphrey Singer said the group was “alive to how the consumer is behaving”, but had seen “no changes yet”.

Chief executive Seb James said: “While the UK consumer environment seems to be holding up for us, there will undoubtedly continue to be changes in the way people buy all of the products that we sell, from phones to washing machines.

“Change always represents opportunity, and our job is to find the propositions that keep us compelling to our customers forever.”

Bottom-line pre-tax profits rose 47 per cent to £386m, while group-wide like-for-like sales lifted 4 per cent.

The Currys and PC World owner said its electricals sales – seen as a retail bellwether – had so far proved resilient to the consumer squeeze being felt by many high street rivals.

Mr Singer said the group had seen “nothing out of the ordinary”, although Dixons is expecting “modest” growth in electricals sales over the year ahead.

Other retailers have been sounding the alarm over the squeeze from Brexit-fuelled inflation, with department store Debenhams the latest to warn over trading conditions on Tuesday.

Sofa chain DFS sparked fears over a slowdown earlier this month when it issued a surprise profit warning, blaming political and economic uncertainty.

Dixons said strong electricals sales in the UK and Ireland offset a more “challenging” mobile phone market, hit by supply issues with some models and more competitive SIM-only deals.

Its new three-in-one megastores are performing as expected, Mr Singer added.

Internationally, the group said sales in the Nordics rose 1 per cent and were 6 per cent higher across southern Europe.

PA