Dixons Carphone’s online sales jumped 166% in the five weeks to April 25, as Britons stocked up on locks such as home office equipment, kitchenware and entertainment.
The share price of listed retailer FTSE-250 jumped more than 19% this morning after the group revealed that its online trades had recovered about two-thirds of its lost store sales in the UK.
Products like bread makers, refrigerators, computers, fitness trackers, games and televisions have sold “particularly well” in recent weeks.
Despite a recent resumption in sales, the electricity retailer has canceled its annual dividend for shareholders.
In demand: Dixons Carphone’s online sales jumped 166% in the five weeks before April 25
The group said, “Dividend payments will not resume until after the cancellation of our reserve credit facilities, which can be done at any time and is something we plan to do when there is more certainty in the future. “
Dixons Carphone welcomed 16,500 people across its operations as part of the government’s job retention program.
The company said: “All colleagues on UK&I leave will be paid 80% of their salary, the company compensating for any difference beyond the government subsidy limits.
All of the retailer’s top ranks have been cut by 20%, and other senior executives have been cut by 10%, the chain said. None of the executives in the UK and Ireland will receive bonuses this year.
Dixons Carphone has extended its borrowing facilities and now has access to more than £ 1.3 billion in borrowing. The chain insisted that it was in a “robust position”.
The group said its net debt for the year is expected to reach £ 300 million.
Comparable sales of Dixons Carphone in the UK and Ireland have dropped 16% in the past few weeks, but online sales have increased 166%, reflecting a surge in demand for products such as computers, games and television products. .
International like-for-like sales have increased 16% in the past five weeks, with the Nordic countries and Greece posting growth of 24% and minus 40% respectively.
Dixons Carphone still making repairs?
In terms of repairs, the retailer said today, “We have reduced the repair and installation services available. We only repair essential items such as washing machines, stoves or refrigeration units.
“Likewise, we currently only offer the installation of stoves necessary for customers and their families.”
The group’s stores in the UK, Ireland and Greece remain temporarily closed, but are expected to account for around £ 400 million in sales this year.
Dixons Carphone said it had kept its “unambiguous price promise”, continued to invest in delivery services, and continued to increase the number of products it stocked.
Chief Executive Officer Alex Baldock said, “We are cautious in conserving cash, have raised additional funds and can plan for the future with confidence.
“We remain committed to continuing our transformation over the longer term and will use everything we learned during this crisis to build a better business for customers, colleagues and shareholders.”
Baldock warned on Sunday that some sales that moved online during the foreclosure will never return to brick and mortar stores.
He said he was planning to open stores with “extreme caution”.
Home office ready: surge in demand for home office equipment has given Dixons Carphone a boost
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