Press release
DSG international plc, one of Europe's leading specialist electrical retailers, is today updating the market on trading for the 12 weeks ended 10 January 2009.
- In the 12 week period, total Group sales were down 1% in sterling and like for like sales were down 10%.
- In the two week period to 10 January, Group like for likes were up 2%, with a better performance in UK computing and electricals and with Nordics flat.
- Gross margins across the Group were down 0.8% year on year, primarily as a result of both the increased proportion of revenue in the sale period as well as a higher mix of televisions and laptops.
- The Group remains focused on cash, cutting costs, managing margins and reducing stock.
- Further cost reductions in the current year of £20 million in response to trading environment, bringing total cost savings for the year to £95 million.
- Careful stock management has resulted in stock levels 16% lower than last year at constant exchange rates.
- The Group is operating within its £400 million committed credit facility which is currently undrawn and available, although it is expected that some drawdown will occur in the final quarter, as anticipated.
- Renewal and Transformation plan on track:
- New format stores continue to perform strongly with sales 15% to 25% ahead of the rest of the chain;
- 41 PC World, 11 Currys Superstores, 4 Currys.digital, 1 Currys Megastore and 1 trial combined PC World and Currys store all traded through Christmas Peak;
- Currys Megastore sales and gross profit contribution exceeded expectations and should generate over £30 million of sales per year.
John Browett , Chief Executive, commented:
"The sales pattern through the period was as we anticipated with customers waiting for the post Christmas sales to purchase discretionary products, particularly televisions and laptops. Our Renewal and Transformation plans continue to progress well.
"Early results from the new store formats, which have now traded through Peak, have continued to exceed our expectations and give us confidence that our plans are delivering for our customers. We expect 2009 to be challenging across most of our markets and are actively planning and managing the business for negative like for likes."
