Curry's owner DSGi warns on profit for second time
Thursday, 10 Apr 2008 09:02
PC World owner DSGi issues second profit warning
Electricals retail group DSG international warned profit would be less than expected for the year and the trading environment is likely to remain "challenging".
For the full year underlying profit before tax is now expected to be in the range of £200 million to £210 million.
This is the second profit warning in three months from the organisation. In January, the company said it was reducing profit expectations to around £250 million for the year.
Total group sales were up six per cent, while like-for-like sales dipped one per cent.
Gross margins were down 0.8 per cent in the period as the group slashed prices in an effort to bring customers in.
DSGi, which owns Curry's and PC World, said the response to these promotions had been positive but non-promotional stock had not sold well. Overall UK sales in computing had been disappointing, the company added.
John Browett, chief executive, said: "The trading environment since we last reported has remained challenging across our markets, particularly in the UK, Italy and Spain.
"While like for like sales patterns are broadly in line with those we reported over the Christmas period, it is clear that customers have become increasingly promotion and deal driven, impacting gross margins."
Mr Browett also said he would present the first phase of a business review he has been carrying out since joining DSGi, on May 15th 2008.