Up until the end of May the retailer was having a pretty decent 2018, climbing to a 9 month peak of £2.36 – admittedly way off the £5 levels it hit at the end of 2015. Yet a shock profit warning, and news it would be closing 92 stores, wiped 21% in value off in a single session, and has left the stock in a rather bad way.
Since that unpleasant update the firm has continued to decline, striking a low of £1.53 in early October. Dixons Carphone PLC (LON:DC) now sits at a current trading price of £1.59.
The company’s last statement came in September. For the 13 weeks ending 28th July, group like-for-like revenue was flat despite a 13% increase in group online revenue. In the UK & Ireland, unsurprisingly, like-for-likes were also unchanged, but with a 1% drop in Mobile comparable revenue.
Internationally, like-for-likes in the Nordic region were, you guessed it, flat; in Greece, however, there was a bit of movement, with the country seeing a 9% jump in LFL revenue, ‘strongly outperforming the market’.
As for its 2018/19 full year guidance, as outlined in May’s investor-upsetting statement it is looking at pre-tax profit of around £300 million, £82 million lower than what it posted in 2017/18.
In terms of the company’s half year results on Wednesday, investors will be praying that Dixons Carphone doesn’t have any more nasty surprises in its fridge. They’ll also be looking for some kind of like-for-like revenue improvement in Q2 after the stagnation of the first quarter (though given the current retail environment, they might actual settle for more of the same).
Dixons Carphone PLC has a consensus rating of ‘Hold’ alongside an average target price of £2.04.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.