Dixons Carphone to reveal rise in profits despite signs of wear on consumer spending
DIXONS Carphone is expected to show signs of wear from the squeeze on consumer spending, despite boosting profits, when it announces full-year results on Wednesday.
Dixons Carphone is expected to show signs of wear from the squeeze on consumer spending
The electricals giant is set to reveal a 9 per cent jump in annual pre-tax profits to around £487.5million, slowing from a 17 per cent rise to £447million in 2016.
Analysts have warned that the firm is likely to feel the strain from customers tightening their belts in the face of rising inflation.
Dixons is set to reveal a 9 per cent jump in annual pre-tax profits to around £487.5million
The long term position of the business is as strong as ever
Graham Spooner, analyst at The Share Centre, said: “Retailers in the UK have begun to report poor trading updates and express caution about their prospects going forward.
“This may be the case with Dixons as the UK consumer feels the squeeze on real incomes from rising inflation through higher import costs and modest wage rises.”
Analyst Graham Spooner said 'retailers in the UK have begun to report poor trading updates'
However, HSBC analyst Andrew Porteous said Dixons Carphone had made “strategic progress” over the past year.
He added: “While the near term demand outlook is challenging as indicated by the return of real wage declines, recent inflation data and retail sales data, the long term position of the business is as strong as ever.”