Electricals retailer DSGi said it expects full-year underlying pre-tax profits to miss forecasts.
DSGi revealed profits would be in the range of£200 million to£210 million for the year. Extensive promotions pushed gross margin down 0.8 per cent
DSGi chief executive John Browett will unveil the first phase of the retailer’s business review on May 15.
The electricals retailer notched up a 6 per cent rise in total group sales in the 25 weeks to April 5, but reported a 1 per cent drop on a like-for-like basis.
DSGi, which runs the PC World and Currys chains in the UK, said that sales were in line with those reported on January 3, when it warned its profit target would be missed by£50 million.
Like-for-like sales in electricals in the UK and Ireland were flat during the period to April 5, while computing sales in the UK were down 9 per cent on a like-for-like basis.
DSGi’s e-commerce division recorded a 29 per cent rise in like-for-likes over the period. Electricals sales at the retailer’s troubled UniEuro chain in Italy slumped 14 per cent on a like-for-like basis.
DSGi chief executive John Browett said: “The trading environment since we last reported has remained challenging across our markets, particularly in the UK, Italy and Spain.”
He added: “It is important that we increase our focus on delivering the value, choice and service that our customers demand, particularly in the prevailing difficult economic environment.”
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