- Group like-for-likes grew 5% over 10 weeks to January 9
- Full-year profits will be slightly ahead of consensus at £440m to £450m
- 134 stores to close as part of merger process, but all staff expected to be retained
- Dixons Carphone tie-up with US telecoms firm Sprint is “progressing well” and it will press ahead with 500 store roll-out
- Dixons Carphone will roll out 3-in-1 format across UK and Ireland in next financial year, cutting store numbers by 134
Dixons Carphone has raised its full-year profits forecast after strong Christmas trading but said it will close 134 shops.
The electricals behemoth said profits would now range from £440m to £450m for the year.
Dixons Carphone also unveiled plans to roll out its 3-in-1 format across the UK and Ireland, combining its PC World, Currys and Carphone Warehouse fascias.
The move will mean 134 stores will close this year - including 79 large PC World and Currys stores. However the retailer said no staff will lose their jobs as affected employees will be offered roles at merged stores.
Dixons Carphone said it would gain £20m in annual incremental earnings from 2017 as a result of the move.
It will invest £50m in refitting the stores and has earmarked £70m for property exit costs and asset write downs
Over Christmas, Dixons Carphone said it made market share gains in all territories it trades in.
Like-for-likes in the UK and Ireland rose 5% over the 10 weeks to January 9.
In the Nordics, like-for-likes rose 3%, due to the impact of currency weaknesses and falling oil prices. In Southern Europe, like-for-likes increased 9%.
Chief executive Seb James said: “The two-humped camel shape that emerged last year was further accentuated with an all-time record day on Black Friday and a strong promotional period after Christmas.”
Dixons Carphone revealed it would push the button on its US expansion following a successful trial with US telecoms group Sprint. It will now activate the full joint venture to manage a targeted 500 stores.
It has also extended its agreement with a major US manufacturer to its business to business service, HoneyBee, which provides services to third parties for the connected home, security and the wellness and wearables category.
Meanwhile, in the UK the retailer has inked a distribution agreement with TalkTalk.