Strong demand for smartphones and tablet computers is helping Carphone Warehouse, Europe's biggest independent mobile phone retailer, to cope with generally subdued consumer spending, it said today.
The British group, which owns 50% of a venture with US electricals group Best Buy, said sales at European stores open more than a year fell 3.3% in the first quarter of its financial year.
That was ahead of analysts' forecast for a 4.75% decline, and would have been a rise of 2-3% if UK sales had not been hit by a shift to longer phone contracts, chief executive Roger Taylor said.
Taylor said the group hoped to announce a refinancing of its Best Buy Europe joint venture in coming days, which analysts think could open the way for Carphone to return the bulk of its £120m cash pile to shareholders this year.
Many European retailers are struggling as shoppers are squeezed by rising prices, subdued wages growth and government austerity measures.
German group Metro yesterday reported a weaker than expected performance at its MediaMarkt-Saturn business, Europe's biggest electrical goods retailer, while rival Kesa has put its loss-making British chain Comet up for sale.
Carphone has fared better than most thanks to its focus on fast-growing markets for smartphones and tablet computers such as Apple's iPhone and iPad.
The company's CEO said that its outperformance had continued, though the group was feeling the effects of consumer belt-tightening in areas such as high-priced accessories and prepay phones.
Taylor also said that Carphone was seeing a pick-up in demand for tablet computers using 3G as well as those linked to smartphone products, where it can make more money than tablets that only use wi-fi.
Connections at Best Buy Mobile in the US climbed 12.3%, lagging forecasts for a 17.5% rise. But Taylor said weakness in prepay phones was offset by a stronger performance in more profitable contract phones.
