Comet group on its guard
Comet stores owner Kesa Electricals yesterday said it was being “more prudent than usual” ahead of what could be a testing Christmas run-up for retailers, writes Peter Cunliffe.
Chief executive Jean-Noel Labroue said trading conditions for the second half of the year were uncertain. “We are not in a specifically pessimistic mood,” he added. “We don’t see strong signs that could impact the year end but we are probably more prudent than usual and ready to take any decision if consumer confidence is strongly impacted by the financial crisis.”
Group half-year sales rose 6 per cent to £2billion but profits dipped £7million to £32.4million on increased investment at Comet in the UK and the Darty and BUT shops in France.
Comet made a £1million loss, with underlying sales up 0.9 per cent, demand for flat-screen TVs and laptops offsetting stagnant sales of appliances. Internet sales rose 23 per cent.
Shares in Kesa fell 15p to 261p, dragging down DSG International, owner of arch-rival Currys, 5p lower at 130p. Broker Credit Suisse said profits at both companies were coming under pressure from increased competition from the web.