How tough did Dixons Carphone (LON:DC) find Christmas? Investors will get a chance to find out when the tech retailer posts its latest results on Tuesday.
You can probably guess how the stock’s 2018 went. Opening at £2, it initially looked like the firm might beat the high street, climbing to a 9 month peak of £2.35 by late May. However, that provided to be something of an anomaly, the company soon joining the majority of its peers on the scrap heap in the second half of the year.
By 2018’s close it was at an all-time low of £1.18, a level it has barely escaped since the start of 2019. Dixons Carphone PLC now sits at a current trading price of £1.33.
The company actually released a substantial report quite recently. On December 12th Dixons revealed that had suffered an interim statutory loss of £440 million, ‘including non-headline charges of £490 million), primarily relating to non-cash impairments’. Following this, it earmarked £200 million in available gross cost savings for reinvestment, to be joined by an additional £200 million of capex to speed up its transformation plans. Elsewhere like-for-like revenue rose 2%, which accelerated growth of 4% in Q2.
Sadly Christmas isn’t expected to have been very merry for the retailer, specifically its struggling Carphone Warehouse brand. That division is forecast to see a 5% drop in comparable sales, though UK Electricals is estimated to have eked out a 1% increase in like-for-likes.
Dixons Carphone has a consensus rating of ‘Hold’ alongside an average target price of £1.95.
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.