Dixons group issues second profit warning

 

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Posted on 10 Apr 2008 at 12:25

DSG has issued its second profit warning in under four months, as sales continue to slide.

The company, which owns the Dixons and Currys brands, reports like for like sales across its stores dropping by 1% in the six months prior to 5 April, causing the company to slash its pre-tax profit prediction from £242 to between £200m and £210m for the year.

"The trading environment since we last reported has remained challenging across our markets, particularly in the UK, Italy and Spain," says John Browett, DSG chief executive.

"Whilst like for like sales patterns are broadly in line with those we reported over the Christmas period, it is clear that customers have become increasingly promotion and deal driven, impacting gross margins."

The group claims it has been forced to cut prices in order to keep people spending, as tough economic conditions force UK consumers to tighten their belts.

Author: Stuart Turton