The retailer swings to a loss in first half but there are plans to transform.
Dixons Carphone shares slump 10% as it cuts dividend
- Dixons Carphone shares are down 35% year to date.
- The retailer announced plans to slice its dividend as it struggles with weak consumer sentiment.
- As long as uncertainty and headwinds persist, it will remain difficult to transform the business.
There is little in the way of Christmas cheer for investors in the interim results from Dixons Carphone this morning as shares tumble 10% in early trading and 35% year to date.
The numbers are dominated by a large write down in the value of its Carphone Warehouse business. Despite an expected modest loss in mobile, there was no change to PBT guidance as the group expect profit for the year of around £300 million and like-for-like revenue was up 2% at £4.87 billion.
The retailer plans to slice the dividend, it will be rebased going forward and was reduced to 2.25 pence from 3.5 pence.
There was also a strategy update, which they hope will transform the business, involving revitalising the mobile business, growing online sales, improving customer experience and credit offerings and cost cutting.
Like many on the high street, the group has been hit by shoppers cutting back and in Dixons Carphone’s case, not been changing their phones as often. As the CEO mentions, headwinds and uncertainty remain for the UK consumer and the plan to transform the business will take time.
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