UK electrical retailer Dixons Retail has reported an expected narrowing of its first-half losses and said its recovery strategy remained on track even though the economic outlook was tough.
'We remain cautious on the economic outlook across many of our markets, as consumer confidence remains low. However, we have maintained our momentum in transforming the group and are performing ahead of the market,' said chief executive John Browett.
Dixons runs the Currys and PC World chains in the UK and Ireland and has businesses in Italy, the Nordic countries and Greece.
It said it made an underlying pre-tax loss of £7.9m in the six months to October 16. The company made a loss of £17.6m in the same period last year.
Total sales were flat at £3.35 billion, while sales at stores open more than a year were up 1%.
It said that while the economic environment in Ireland remained tough, there was a return to annual growth in underlying sales in the second quarter of the financial year. 'However, more recent economic news flow in Ireland has dampened consumer confidence,' it added.
Dixons, which makes all its profit in the second half, is two and a half years into a turnaround plan focused on selling under-performing businesses, cutting costs, revamping stores, opening larger stores, and improving product ranges and customer service.
The programme has generally been well received by analysts, but Dixons' share price has fallen by a third over the last year. Investors are concerned about the economy, competition from supermarkets and internet retailers, and the arrival in Britain of US electricals market leader Best Buy.
