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Dixons Carphone 11-week LFL Sales Up; Not To Achieve FY View Due To Covid-19

Dixons Carphone plc (DC.L), a consumer electrical and mobile retailer, reported Thursday that group like-for-like sales remained flat for the 8 weeks to February 29, while it grew 13 percent for the 3 weeks to March 21 and 4 percent for the 11 weeks to March 21.

Looking ahead, the company said it will not achieve previous guidance for current year adjusted profit before tax of 210 million pounds due to the changing situation regarding coronavirus or COVID-19.

In the last 3 weeks, Group Electricals LFL went up 23 percent while the growth was 8 percent for the 11 weeks.

In line with Government guidance, the company closed stores across the UK and Ireland from March 24. This follows store closures in Greece from March 18. At present almost all stores in the Nordics continue to trade.

The stores that are now closed were expected to contribute sales of about 400 million pounds for the rest of the year. There will be some recovery through Online operations but overall the loss of sales will adversely impact its full year profitability and cash position.

The company's large Online operations remain open. Online trading has been very strong in all countries over the last two weeks as people have been preparing to work from home and use essential technology to continue their lives during the Coronavirus outbreak.

Early signs are that this strong trading has continued since stores closed and will help to compensate for lost store sales.

The company said it has seen very good sales of equipment for home working, such as laptops, printers, for home entertainment and for home living, including fridges, freezers, kitchen appliances.

The COVID-19 situation continues to develop and is likely to remain uncertain for some time. The company said it will not update current year or medium-term guidance until the impact of COVID-19 becomes clearer.

Further, the company announced cash control measures in the nearer term, because of disruption to sales. The company said it does not expect disruption from COVID-19 over the long-term.

The company added that the final dividend is not payable until September, the Board will consider whether it is prudent to pay a final dividend at its full years' results.

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