Kesa Electricals lowers profit forecast further |
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Thu, 19 Jan 2006 18:50
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LONDON: Anglo-French electrical retailer Kesa Electricals Plc. lowered its full-year profit forecast for the second time in two months Thursday, saying it could be towards the lower end of market expectations. The company's like-for-like sales slipped 0.3 per cent in the 10 weeks ended 8 January, marked by a disappointing performance over Christmas.
Chief executive Jean-Noel Labroue said the company expects results for the full year towards the lower end of current market expectations -- profits in the range of 145 million pounds to 161 million pounds. At the lower end, it represents a 22 per cent drop compared with fiscal 2005 figures.
The company had made a profit warning in November faced with disappointing sales.
Labroue said the company's better-than-expected electrical sales at French unit Darty and Britain's Comet were more on account of sales of lower margin products. The demand for higher margin products remained weak, he said.
The company's French furniture chain BUT put up a dismal show.
Kesa said for the period 1 November 2005 to 8 January 2006, its 204-store Darty chain had like-for-like sales growth of 2.5 per cent compared with analysts' forecasts of minus 4 to plus 2 per cent. At the 250-store Comet chain, like-for-like sales fell 2 per cent compared with forecasts of minus 3 to minus 0.9 per cent. The 104-store BUT furniture chain had an 8.6 per cent drop in sales compared with forecasts of minus 3 to plus 2 per cent.
Total sales at Darty and Comet in local currency were up 4.7 pct and 2.6 per cent respectively, while total sales in local currency at BUT fell 1.6 pct.
Like-for-like sales at the company's other businesses -- BCC, Vanden Borre, Datart, Darty Italy, and Darty Switzerland -- went up 4.6 per cent and total sales increased 20.6 per cent.
The company's shares fell 3.8 per cent to 253-1/2 pence. The company is expected to announce the year's results on 22 March.
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