Comet's like-for-likes slow in first half

Kesa-owned electricals retailer Comet posts sales up, but like-for-likes flat, as analyst warns of tough trading environment

Electricals retailer Comet has posted a 3.3 per cent increase in sales, but its like-for-like sales growth slowed to 0.9 per cent growth in the six months ending July 31.
The Kesa-owned UK chain also reported a retail loss of£1 million, compared with a profit of£4.8 million for the first half of 2006, which benefited from a one-off£3.5 million net lease premium.

Kesa Electricals chief executive Jean-Noel Labroue said: “Trading conditions in the second half of the year are uncertain, particularly in the UK. As always, our full-year performance is reliant on our key peak trading period in the fourth quarter of the year and we will remain focused on cost control, cash and margin management and operational efficiencies.”

Numis analyst Jose Marco-Tobares said: “We remain concerned on the UK retail environment, especially with regards to high-ticket purchases and the fact that price deflation on flat-panel TVs is running at about 25 per cent per annum. Comparatives in the second half get tougher so we are expecting H2 like-for-likes to decelerate to +1.5 per cent.” During the first half of last year, Comet enjoyed a spike in sales of TVs from the football World Cup.

Overall, Kesa – which owns the Darty and BUT chains in Europe – grew its underlying group retail profit by 13.8 per cent to£55.9 million, on like-for-likes up 3.9 per cent.