The Christmas period started with Black Friday in late November and the US-inspired shopping holiday didn’t detract too much from the traditional British Boxing Day offers. The nine weeks before early January saw sales rise by 7%. Over the festive period the UK and Ireland division was the best performer and registered an 8% jump in like-for-like sales. Over in continental Europe, the division between the north and south is evident, as the like-for-like sales rose by 6% and fell by 4% respectively.
Dixons Carphone is coming up to its first-year anniversary after the merger of Dixons and Carphone Warehouse. The integration of the two businesses is going well, and CEO Sebastian James stated that it is going better than he ‘dared hoped’, and the new group hopes to save £80 million between now and 2017 as a by-product of the merger. The longer-term plan for the company is to start rolling out more Dixons Carphone stores.
The market is expecting revenue of £10.56 billion and adjusted net income of £276 million when Dixons Carphone reveals its full-year numbers. Investment banks are bullish on the company, and out of the 14 recommendations, 10 are buys, two are holds, and two are sells. The average target price is £5.10, which is 10% above the current price. Equity analysts are also bullish on Home Retail Group, and out of the 20 ratings, nine are buys, seven are holds, and four are sells. The average target price is 185p, which is 15% above the current price.
The share price of Dixons Carphone is receiving support from 460p, and if that level is held the medium target will be £5.