DSG International, the group that owns Dixons, has reported a record-breaking Christmas, as sales rose 8% over the previous year.
According to the group’s earning forecast, it shifted a computer or television every two seconds in the quarter ended 9 January, and looks set to continue the turnaround started in October.
If the prediction pans out the company is on course to post a pre-tax profit of around £90 million for the financial year, alongside £50 million of cost savings as part of its £200 million four-year budget-slashing exercise.
This is evidence of a genuine cyclical recovery but how sustainable it is remains to be seen
PC World continues to be a thorn in the group’s side, however. Despite benefiting from the launch of Windows 7, the division still suffered a sales decline of 3% on last year.
The results also suggest that DSG’s program of modernising its Currys and PC World chains is bearing fruit. Last year, DSG promised that the stores would be “unrecognisable” following a three-year plan to train 20,000 additional staff, increase floorspace and add further product lines.
According to DSG, the first wave of these revamped megastores pulled in more than a million pounds during the first week of the Christmas sales.
However, the company’s chief executive, John Browett, remained cautious of the year to come. “This is evidence of a genuine cyclical recovery but how sustainable it is remains to be seen,” he said on a conference call with analysts.
“Looking forward, we expect 2010 to be tough across Europe and notably in the UK, given the economic environment. However, we expect to continue to benefit from the self-help of our Renewal & Transformation plan and continue to build solid foundations for future growth.”
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