You can probably guess how the stock’s 2018 went. Opening at £2, it initially looked like Dixons Carphone shares might beat the high street, climbing to a 9 month peak of £2.35 by late May. However, that proved 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 shares now sit 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 shares have a consensus rating of ‘Hold’ alongside an average target price of £1.95.
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