Customer Behaviour

Sales at mobile phone retailer Dixons Carphone rose 4% for the year to April despite what it calls “a lively political backdrop”. In a trading update ahead of its annual results, the Currys and PC World owner said total sales including those at newly opened stores jumped 9%.

It enjoyed strong growth in southern Europe, particularly at its Kotsovolos chain in Greece. Dixons now expected annual pre-tax profits to be between £485m to £490m.

Chief executive Seb James said Brexit had not changed consumer behaviour.

“We’re very vigilant because there’s lots of chatter about how the UK consumer is gloomy or isn’t gloomy … so far it seems that customers continue to shop in our stores,” he said on a conference call.

In the last three months of its financial year, UK sales were hit by the five-week delay for Samsung’s new S8 smartphone. Revenues for that period fell 1%.

Mr James said: “We anticipate no let-up in [consumers’] very rational view that price and service are critical factors in deciding where to shop.”

Shares in Dixons Carphone rose 3.6% in morning trading in London but have fallen by a quarter over the past 12 months.

Analysts at Liberum described the trading update as “solid” and that Dixons Carphone remained their top pick in the UK retail sector with a “buy” rating.

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