skip to Main Content
enquiries@thearmchairtrader.com

Sign up for our Daily Digest newsletter - receive our daily market analysis and insight every morning

Following a horrible 2018, one that saw Dixons Carphone shares tumble from £2.02 to £1.21 by the end of the year, the retailer hasn’t been able to rebound in the way it would have liked.

It did, admittedly, manage to stagger to a 4-month high of £1.52 in mid-April, overcoming a February/early March slump to do so.

But since then it has been in trouble, plunging to a fresh all-time low of £1.12 at the start of June. Dixons Carphone shares now sit at a current trading price of £1.22.

The company’s last full financial update was actually all the way back in January, as it posted its Christmas figures.

For the 10 weeks to 5th January, reported group revenue was flat, with a 2% increase in UK & Ireland electricals – which saw ‘record Peak sales’, with a ‘stand-out’ performance in Gaming, which saw a 60% surge in sales – and a 4% rise in its International division, countered by a drastic 12% drop in UK & Ireland mobile.

Its like-for-like performance was a tad better, climbing 1% for the group, mainly because the UK & Ireland mobile decline was less severe, the division suffering a 7% slide.

The mobile arm was especially hurt by falling demand for 24-month contracts, with consumers shifting away from regularly upgrading their handsets as the tech-leaps lessen between each generation, instead favouring SIM-only contracts.

During that Xmas update, Dixons Carphone said it was still expecting full year pre-tax profit of around £300 million (a figure unaffected by March’s £29.1 million fine from the FCA). That’d be a 21.5% decline year-on-year, and leave it £200 million short of the £500 million posted just 2 years ago.  Considering how sharp the firm’s recent falls in pre-tax profit have been, the most important number on Thursday could well be its forecasts for 2019/20.

Dixons Carphone shares has a consensus rating of ‘Buy’ alongside an average target price of £1.91.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

Share this article

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

Back To Top

Oops! We could not locate your form.

Oops! We could not locate your form.

Oops! We could not locate your form.

Oops! We could not locate your form.

Oops! We could not locate your form.

Sign up for our daily morning digest

Stay ahead with our latest market analysis and insight, direct to your inbox every weekday morning at 8am

  • This field is for validation purposes and should be left unchanged.

 

Market insight and analysis, direct to your inbox

  • This field is for validation purposes and should be left unchanged.