Dixons Carphone sees annual sales reach £ 10.3 billion as online shopping boom drives business
ixons Carphone expects strong demand for electrical products to outlast the pandemic as technology becomes more important to people, the retailer said as annual sales hit Â£ 10.3 billion.
The company saw its online sales of electrical products increase 103% to Â£ 4.7 billion in the year to May 1, as there was a boom in digital shopping.
This helped total revenue for the year to rise 2% to Â£ 10.3 billion, with the exceptional digital growth helping to offset trade losses when stores had to close for Covid-19 lockdowns .
The company, which operates as Currys PC World in the UK and Ireland, saw strong demand for laptops and game consoles as customers looked to work and keep in touch with people at home. home during the pandemic.
But chief executive Alex Baldock predicts continued good demand even as lockdown restrictions relax, offices reopen and customers have more choices of places to shop.
He said: âWe believe that Covid-19 has structurally increased the size of the technology market. Hybrid work will become normal and home entertainment will remain more important. “
He added: “More time at home means more use, and more customers’ eyes have been opened to what the new technology can do, indicating a faster replacement.”
Dixons Carphone said the start of the last fiscal year saw strong business activity. It will resume dividend payments, with an annual dividend of 3p proposed.
In the year through May, the chain, which has 829 stores in the UK, Ireland, Greece and the Nordic countries, reported a pre-tax profit of Â£ 33million, compared to a loss from Â£ 140million a year earlier.
He refunded Â£ 73million in leave money to governments which was used for British and Irish staff.
A note from analysts at Liberum said: “Overall, we think this is a very positive statement today.”
Dixons Carphone made a number of changes to the company over the past year, including shutting down its standalone Carphone Warehouse stores in the UK following less regular upgrades to their cellphones.
It also announced in April this year that it plans to close its airport shopping business, comprising 35 branches.