Dixons and Currys owner DSG International said today that group like-for-like sales grew 6% in the 16 weeks to 18 August, but it remained cautious about the outlook for consumers.
DSG said in a trading update it was too early to extrapolate trends for the remainder of the year.
Chief executive John Clare said the group had made a good start to the year despite tough comparatives last year when the football World Cup competition boosted sales of flat screen TVs.
Flat screen TVs and laptops continued to drive demand, helped by poor weather which boosts sales of such goods, while the market for so-called 'white goods', such as washing machines and fridges, had been more encouraging across most of Europe.
'Whilst the year has started well we remain cautious about the outlook for the consumer in the UK and across much of the rest of Europe in a higher interest rate environment,' Clare said in the statement.
The group's Italian business, whose poor performance hit DSG's 2006/07 results, had seen a deterioration in trading in July, after a good start in May and June. Like-for-like sales fell by 5% in the 16-week period.
Last week DSG said the housing downturn in Ireland will result in a lower rate of expansion at the electrical goods retailer this year.
Outgoing DSG chief executive John Clare said the impact of the property slowdown was "not dramatic" but his warning of slower growth in Ireland suggests housing market weakness is spilling into other economic sectors.
'We're still forecasting that our markets will grow this year and that our share will grow, and that we will grow profits,' Mr Clare had said in an interview.
