LONDON (Reuters) - Dixons Carphone (L:DC), the European electricals and mobile phone retailer, raised profit guidance for its 2014-15 year after quarterly trading smashed expectations on the back of market share gains, particularly in the UK.
The firm, formed by last year's merger between Dixons Retail and Carphone Warehouse, said sales at stores open over a year were up 9 percent in the 17 weeks to May 2, its fiscal fourth quarter.
That compared with analysts' consensus forecast of a rise of 4 percent.
Group gross margins were stable in the full year.
Dixons Carphone said underlying pretax profit was now expected to be slightly above the top end of the previously guided range of 355-375 million pounds.
The performance was driven by the group's UK & Ireland division, where like-for-like revenue soared 13 percent, well ahead of analysts' consensus forecast of up 5 percent.
Sales on the same basis were up 1 percent in the Nordics division and up 8 percent in southern Europe.
The firm said year-end net debt was expected to be ahead of guidance of 300 million pounds.
"It is a truism that the time to fix the roof is when the sun is shining, and we will pursue continued investment in the business this year to do just that," said Chief Executive Seb James.
Shares in Dixons Carphone, up by a half over the last year, closed Tuesday at 479.3 pence, valuing the business at 5.5 billion pounds.