Dixons Carphone share price: Company expected to post strong full-year results

Dixons Carphone Plc (LON:DC) is expected to post rising sales and profits on Thursday, when it announces its first full-year financial results since its formation through last year’s merger between Dixons Retail and Carphone Warehouse. The Sunday Times yesterday reported that the computer, electronics and mobile phone retailer was forecast to show a six-percent increase in like-for-like sales, with pre-tax profits up to £376 million from an estimated £299 million last year. The newspaper also noted that the firm was targeting £80 million in cost savings as a result of the merger.

Meanwhile, it appears that the company’s Greek unit has seen a boost in sales as a result of the ongoing debt crisis in the country. Dixons Carphone’s chief executive officer, Seb James, visited the country last week to oversee contingency planning at Kotsovolos, Dixons Carphone’s chain of Greek stores. He told The Telegraph that the fears of a collapse of Greece’s banking system appeared to be encouraging consumer spending.
“Sales are actually growing year on year. I think there has to be a bit of people wanting to spend their cash in that,” James said.
A similar trend has recently been observed in Greece’s car market, with people buying vehicles as alternative assets. According to official data, in June car sales in the country were up 22 percent on last year. This may seem counter-intuitive, with electronic goods and motor vehicles famously quickly depreciating assets, but it seems as though the Greek population considers this as a more attractive alternative to maintaining cash savings.
James observed that “out of the crisis might come opportunity” such as weakened competition, which Dixons Carphone intends to use to strengthen its position in the country. The Kotsovolos chain currently has 100 outlets across Greece and accounts for under three percent of Dixons Carphone’s total sales.
In today’s trading, Dixons Carphone shares was 0.8 percent higher at 453.00p, as of 08:44 BST. The stock has fallen just over two percent since the start of the year and the company’s market capitalisation currently stands at £5.2 billion.
As of 10:37 BST, Monday, 13 July, Dixons Carphone PLC share price is 452.75p.

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