DSGi suffers poor first quarter

The group, which operates the Currys and PC World fascias in the UK, reported a 7 per cent slump in like-for-like sales for the 16 weeks to August 23.

DSGi said that it remained cautious about the consumer outlook. Total group sales were up 4 per cent in sterling and down 2 per cent in local currency. Gross margins were down 0.75 per cent year-on-year.

In the UK and Ireland, like-for-like sales fell 7 per cent in electricals and were down 12 per cent in computing.

The retailer said that it had delivered a£50 million cost reduction programme and is targeting an additional£25 million of cost savings this year.

In a statement ahead of the retailer’s AGM later today, chief executive John Browett said DSGi had had “a challenging start to the year” and that “the economic background in which the group operates remains difficult across Europe”.

He said: “This is a period of intense activity for the group, as we action our three-year renewal and transformation plan and focus on the customer.” Browett outlined his plans to turnaround the business in May.

Like-for-like sales fell 4 per cent in the Nordic region and 12 per cent in southern Europe, which includes the struggling Spanish and Italian divisions, which, along with its eastern European division, could be sold.

However, like-for-likes at DSGi’s e-commerce division, which includes Dixons.co.uk and PIXmania, rose 6 per cent during the period.

Blue Oar Securities analyst Ian MacDougall said the performance was “even worse than we feared”.

The company also announced that chairman Sir John Collins will retire from the board following DSGi’s AGM next year, after six years in the role.