- Title:
Peak Trading Statement - 2020/21 - Time:
07:00:04 - Date:
20 Jan 2021 - Category:
Trading updates - ID:
2376M
20 January 2021
Trading Update for 10 weeks ended 9 January 2021
Continued strong online momentum despite Covid impact
· Electricals like-for-like revenue +11%
o Highest growth in large screen TVs, smart tech, food preparation, health & beauty and all areas of computing & gaming
· UK & Ireland Electricals like-for-like revenue +8%
o Online growth +121%
o Online market share +6%pts
· International like-for-like revenue +14%: Nordics +19%, Greece (13)%
o Nordic online sales +97%, Greece online sales +366%
o Nordics: Double-digit growth and strong market share gains
o Greece: Performance impacted by national lockdown
· UK & Ireland Mobile total revenue down (40)%
o Sales and cashflow in line with plan given UK standalone Carphone Warehouse store closures last April
· Transformation progress:
o Omnichannel: Group Electricals online sales +118%. ShopLive 24/7 live video shopping growing strongly
o Credit: UK Electricals credit customers grew to 1.4m
o Services: Nordic Customer Club grew to over 4.9m members and 50% of Black Friday week sales
o Mobile: Restructuring on track, new mobile offer to launch this year
Alex Baldock, Group Chief Executive
"I'm so grateful to my colleagues. Thanks to their dedication and adaptability in such a testing time, we've kept safely providing vital technology to the public, keeping millions of people connected, healthy, productive and entertained. And so we've continued to trade strongly, both in the UK and Internationally, while ensuring colleague and customer safety is paramount.
We're winning online, where we're the biggest and fastest-growing specialist technology retailer in all our markets. And even where stores have been closed, our work to bring the best of digital and physical shopping to every customer has borne fruit in such innovations as our 1-hour drive-thru Order & Collect and ShopLive. Our flexible infrastructure and accelerating transformation mean we've been able to react ever-faster to changing trading restrictions, while building more lasting and valuable customer relationships.
The outlook remains uncertain, and we're still far from our full potential. But this strong performance makes us more confident than ever that we're on the right path to create a world class business for colleagues, customers, shareholders and society."
| Like-for-like revenue growth |
10 Weeks to 9 January |
| UK & Ireland Electricals |
+8% |
| International |
+14% |
| - Nordics |
+19% |
| - Greece |
(13)% |
| Electricals |
+11% |
Outlook
At present there are enforced closures of large parts of our operations across the UK, Ireland and Denmark and there is no certainty on when these will end. The business has proven that it can deliver a strong trading performance irrespective of these restrictions, and despite current store closures we expect to deliver full year profits in line with market expectations. All medium-term guidance remains as previously announced.
Investor and analyst call
There will be a conference call for investors and analysts at 11:00am GMT this morning.
Dial in details: +44 (0)330 336 9125. Confirmation code: 4456906
Next scheduled announcement
Dixons Carphone is scheduled to publish its Full Year results on Wednesday 30 June 2021.
For further information
| Assad Malic |
Group Strategy & Corporate Affairs Director |
+44 (0)7414 191044 |
| Dan Homan |
Head of Investor Relations |
+44 (0)7400 401442 |
| Amy Shields |
Director of External Communications |
+44 (0)7588 201442 |
| Tim Danaher, Sam Chiene |
Brunswick Group |
+44 (0)207 4045959 |
Information on Dixons Carphone plc is available at www.dixonscarphone.com
Follow us on Twitter: @dixonscarphone
Online share of business
| Online share of business |
10 weeks to 9 January 2021 |
10 weeks to 11 January 2020 |
YoY (%pts) |
| UK & Ireland Electricals |
75% |
37% |
+38% |
| International |
32% |
17% |
+15% |
| - Nordics |
30% |
19% |
+11% |
| - Greece |
48% |
8% |
+40% |
| Electricals |
53% |
27% |
+26% |
Operational status by market
| Country |
Trading restrictions in 10 weeks to 9 January |
Current operations |
| England 242 stores |
· National lockdown 5 November to 2 December; non-essential retail stores closed · Tier 4 restrictions start to come into force from 20 December; non-essential retail stores closed · National restrictions in place from 5 January, to be reviewed w/c 15 February |
· Electrical stores categorised as 'non-essential' · All Currys PC World featuring Carphone Warehouse stores open for zero contact Order & Collect and returns and repairs, but closed for browsing · Extensive hygiene and social distancing measures in place to make sites Covid-secure · ShopLive and home delivery continue as usual · Essential in-home services available with appropriate safeguards |
| Scotland 30 stores |
· Tier 4 restrictions in place in 11 local authority areas from 20 November to 11 December · Tier 4 restrictions in place on mainland Scotland from 26 December; non-essential retail stores closed · National restrictions in place from 5 January, until at least 31 January |
|
| Wales 19 stores |
· National 'firebreak' restrictions in place until 9 November; non-essential retail stores closed · National restrictions in place from 24 December; to be reviewed every three weeks; non-essential retail stores closed |
|
| Northern Ireland 10 stores |
· National 'circuit breaker' restrictions in place from 27 November to 11 December; non-essential retail stores closed, click and collect services permitted · National restrictions in place from 26 December until 6 February; to be reviewed w/c 21 January; non-essential retail stores closed; click and collect services not permitted |
· Electrical stores categorised as 'non-essential' · All Currys PC World featuring Carphone Warehouse stores open for Order & Collect and returns and repairs, but closed for browsing · Extensive hygiene and social distancing measures in place to make sites Covid-secure · ShopLive and home delivery continue as usual |
| Republic of Ireland 85 stores including 69 Carphone Warehouse standalone stores |
· National Level 5 restrictions in place until 30 November · National Level 5 restrictions from 24 December
|
· Electrical and telecommunication stores categorised as 'essential' · The majority of stores open as usual with exception of gaming · Extensive hygiene and social distancing measures in place to make sites Covid-secure · ShopLive and home delivery continue as usual |
| Dixons Travel 33 stores |
· Various restrictions depending on store location (England, Wales, ROI, Northern Ireland, Scotland, Oslo) |
· All stores closed except those in Dublin and Oslo |
| Norway 154 stores including 68 franchise |
· No restrictions |
· All colleagues wear face masks in the stores · Limiting number of visitors in many stores |
| Sweden 172 stores including 70 franchise |
· No restrictions |
· No restrictions but law allowing restrictions now passed · Limiting visitors in all stores |
| Denmark 38 stores |
· Shopping centres closed from 17 December · Stores closed from 25 December |
· All stores closed until 8 February · Click & collect allowed |
| Finland 42 stores including 20 franchise |
· No restrictions |
· All colleagues wear face masks in the stores |
| Greece 92 stores including 19 franchise |
· Stores closed on 7 November, reopened on 14 December for collection only |
· Stores reopened on 18 January, except two stores in high risk areas · Online delivery operating as usual |
About Dixons Carphone
Dixons Carphone plc is a leading omnichannel retailer of technology products and services, operating through 931 stores and 16 websites in eight countries. We Help Everyone Enjoy Amazing Technology, however they choose to shop with us.
We are the market leader in the UK & Ireland, throughout the Nordics and in Greece, employing over 22,000 capable and committed colleagues in the UK & Ireland and approximately 32,500 globally across the Group. Our full range of services and support makes it easy for our customers to discover, choose, afford and enjoy the right technology for them, throughout their lives. The Group's core operations are supported by an extensive distribution network, enabling delivery to stores and homes, a sourcing office in Hong Kong and a state-of-the-art repair facility in Newark, UK.
Our brands include Currys PC World and Carphone Warehouse in the UK & Ireland and iD Mobile in the UK; Elkjøp, Elgiganten and Gigantti in the Nordics; and Kotsovolos in Greece. Our Dixons Travel brand has a presence across several UK airports as well as in Dublin and Oslo, and our services are provided through Team Knowhow.
Certain statements made in this announcement are forward-looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Information contained on the Dixons Carphone plc website or the Twitter feed does not form part of this announcement and should not be relied on as such.
Peak Trading Statement - 2020/2107:00:0420 Jan 2021Trading updates2376M