Dixons Carphone has said that higher iPhone sales lifted its revenues over the Christmas period, as it confirmed a change in leadership and a steep drop in full-year profits.
The chief executive, Sebastian James, is leaving to run Boots and in April will hand over to Alex Baldock, currently boss of the online retailer Shop Direct. The finance director, Humphrey Singer, is also leaving.
Dixons, which owns Carphone Warehouse and Currys PC World, posted 3% growth in like-for-like sales in the UK and Ireland for the 10 weeks to 6 January, meeting City expectations. Group like-for-like sales beat forecasts with a 6% gain due to strong growth in Greece and Scandinavia.
However, full-year profits will be down sharply from last year after a tough first half, as more expensive handsets deterred consumers from upgrading their phones. The group forecasts between £365m and £385m for the full year, down from £501m.
The new iPhone X has been selling well along with big TVs, games, Dyson Supersonic hairdryers and voice-control devices. The retailer said it did better during Black Friday week than in its Boxing Day sale, mirroring the performance of other retailers. Profit margins fell slightly because it sold more large TVs and white goods, which are more expensive to deliver than smaller items.
James said: “The consumer [business] is OK in the UK. We have seen this year a pattern of winners and losers and I’m very happy that we are in the winners camp.”
He said Dixons was working hard on refocusing its mobile business. It is in negotiations on leasing deals to help customers who do not want to buy a phone outright.
James played down the prospect of widespread store closures, saying: “We need a large store estate.” The company has nearly 700 standalone shops in the UK.
Dixons is rolling out “gaming bunkers” – it currently has two in Britain and more abroad – where customers can play games.
James said: “For the remainder of this [financial] year we have an early Easter, a new Samsung phone and the first week or two of our World Cup promotion to look forward to.”
