Dixons Carphone results reveal marriage of unequals

Electronics sales up and mobile sales down in duo's first trading statement as merged entity

Dixons Carphone revealed its electricals and mobile sales are heading in opposite directions as it announced its first trading update as a merged company.

While the legacy Dixons Retail business saw UK and Ireland like-for-like sales bounce four per cent in its Q1 to 2 August, the old Carphone Warehouse business suffered a six per cent drop in like-for-like sales during the same period.

Dixons Carphone said it was expecting its mobile business to shrink due to strong sales in the same quarter last year and difficult market conditions in Spain.

The electricals business was boosted by the World Cup, some consumer recovery and Dixons' ploy of offering free warranties, it added.

Chief executive Sebastian James said it had been a good start for the enlarged retailer, which will be inducted to the FTSE 100 on 22 September.

"I am pleased to report a good start to the year and to our new shared enterprise," he said. "Dixons Carphone looks to be in excellent shape to tackle the perpetually shifting sands of the market and to achieve its goal of improving our customers' lives through technology."

James claimed the integration of the two firms is progressing well, with seven departments now serving both parts of the business in an integrated fashion. Its 11 ‘store-in-stores' are also "performing ahead of the business case" set out in the merger, which was competed on 7 August, he added.