Up until the end of May, Dixons Carphone shares were 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 retailer has continued to decline, striking a low of £1.53 in early October. Dixons Carphone shares now sit at a current trading price of £1.59.
Flat revenues
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 actually settle for more of the same).
Dixons Carphone shares have a consensus rating of ‘Hold’ alongside an average target price of £2.04.
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