Full-year results for Kesa Electricals show a 19.4 per cent fall in pre-tax profit toÂŁ143.3 million.
Kesa, Europe's third-largest electrical retailer, owns Comet in the UK and Darty and BUT in France. Total turnover for the group increased by 3.6 per cent toÂŁ4.1 billion.
For the year ending January 31, retail profit at Comet was down by 21.4 per cent fromÂŁ48.7 million toÂŁ38.3 million. Like-for-like sales were down 3.6 per cent.
In France, Darty's turnover was up by 4 per cent, but retail profit fell fromÂŁ118.5 million toÂŁ109.9 million. At BUT, turnover was also up, by 5.4 per cent, but again retail profit was down toÂŁ34.2 million fromÂŁ41.5 million.
Across the group there was strong year-on-year growth in products such as flatscreen televisions, MP3 players and DVD recorders. Demand for white goods fell - a trend that is expected to continue this year.
Chief executive Jean-Noel Labroue said: 'In 2006, sales again will be led by digital products, with the World Cup accelerating the already fast-growing sales of flatscreen televisions, although we do not anticipate any significant upturn in the white goods market. In these market conditions, we will continue to focus on cost control and margin management, while accelerating investment in our existing businesses and developing the Darty brand in new markets.'
Overall trading since January 31 has improved, but Kesa conceded that it is too early to predict whether this will continue.
Retail analyst Numis said: 'The group comments that trading has improved since the year end, particularly in France, although this is not in any quantified way. They expect to see further price deflation in this category and add that consumer confidence remains 'fragile''.
The company de-merged from Kingfisher, the home improvement retailer, in 2003.
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