Dixons Carphone sales remain flat in first quarter

(Sharecast News) - Dixons Carphone reported flat like-for-like revenues in the first few months of its financial year as a World Cup boost for TVs was offset by softer white goods and computing.Management said full year guidance for profit before tax of around £300m remains unchanged.Chief executive Alex Baldock, who joined in April, said "good progress" had been made to set "a clear long-term direction for the business, one that sharpens our focus on the core, and that better joins up both our offer to customers and our business behind the scenes". He said he would give a fuller update on plans and progress in December.Reported sales for UK and Ireland were down 2% due to currency effects, with LFL sales flat. Likewise, group sales were down 2% but flat on a LFL basis.UK mobile LFL sales were down 1% due to a continued reduction in the postpay phone market, while on the bright side there were market share gains in SIM Only and SIM Free phone sales. Apple's upcoming iPhone launch will be watched with interest.LFL sales in the Nordics were also flat, with total sales down 2%, with good market share gains driven by better availability. Greece lifted LFL revenues 9%, strongly outperforming the market, with reported revenue up 11%.Analyst Laith Khalaf at Hargreaves Lansdown said that with consumers still under pressure from weak wage growth, above-target inflation and now rising interest rates, this would continue to undermine the market for big ticket items like fridges and laptops."This isn't going to be a pretty year for Dixons Carphone, with profits expected to fall by 20%, as conditions for traditional retailers remain challenging," he said."Dixons Carphone is the last man standing on the UK high street though, and if it can provide face-to-face guidance that customers value, it can carve itself a niche in an increasingly digital marketplace. For investors, the question is how big or small that niche will be after Amazon and eBay have had their say."