Dixons Carphone shares dive on profits warning

Dixons Carphone shares dive on profits warning

Shares in Dixons Carphone have sunk by nearly a quarter after it warned of a sharp fall in profits this year.

The mobile phone and electrical goods retailer said profits for 2017-18 would be £382m, but it expects profits to fall to £300m in 2018-19.

It blamed “challenges in UK mobile”, including “contractual constraints” such as people not renewing their handsets as frequently.

The company also plans to close 92 Carphone Warehouse stores this year.

However, total sales were 3% higher in the year to 16 April, while like-for-like sales were up 4%.

In the UK, sales grew 2% for the year as a whole, and by 1% in the fourth quarter.

The international division division did better, with like-for-like sales in the Nordics up 9% in the year and Greece up 11%.

Source: BBC News

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