DSG beats FY expectations as sales show strong jump |
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Wed, 10 May 2006 14:55
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LONDON - Pan-European electricals retailer, DSG International PLC has said that it expects its full-year profits to be ahead of expectations and fall in the £312 million to £318 million range. Analysts were expecting profits to be between £300 million to £310 million.
DSG, formerly known as Dixons Group PLC, said that like-for-like sales increased by 7 percent in the six months ending April 29 thanks to the strong demand fro iPod and MP3 players. John Clare, chief executive of DSG said that digital sales were expected to be strong in the World Cup season, "We continued to grow our market share in all countries, confirming the appeal to customers of our retail formula that focuses on advice and support, a wide choice of top brands and market beating propositions," he said.
"We expect strong sales of digital products to continue at least through the period leading up to the World Cup," he added. "We remain cautious about the speed of any long term recovery, and much will depend upon wider economic factors in relation to tax, pensions, employment and interest rates." Total sales in the electrical segment were up 9 percent for the whole year but sales at The Link fell by 21 percent.
DSG said that the new contracts were now paying off and were responsible for a 12 percent increase in Q4 as compared to last year's figures. However DSG said that despite beating forecasts, it was "cautious about the speed of any long term recovery, and much will depend upon wider economic factors in relation to tax, pensions, employment and interest rates". The company will announce its full-year results on June 21.
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DSG makes Dixons internet brand, renames stores as Currys.digital 