More retail woes
Dixons Carphone shuts stores, profits lower
Stores are closing amid a profits warning (photo by Terry Murden)
Dixons Carphone is closing 92 standalone Carphone Warehouse stores after warning that its full-year profit will fall by 21% to £382 million for 2017-18, against £501m last year.
It expects pre-tax profits to come in at “around £300m” in the following year.
Dixons said “challenges in UK mobile” continued, including “contractual constraints” such as people not renewing their handsets as frequently.
The company has been cutting costs in anticipation of lower profits margins.
The group said total sales were 3% higher in the year to 16 April, while like-for-like sales were up 4%. In the UK, sales grew 2% for the year, and by 1% in the fourth quarter.
The international division division did better, with like-for-like sales in the Nordics up 9% in the year and Greece up 11%.