Dixons Carphone plc - Appointment of new Group CEO
Dixons Carphone plc - Appointment of new Group CEO
Underlying group revenue at Dixons Carphone was up 6% in the 10 weeks to January 6
22 January, 2018, 18:31
Alex Baldock said: "I can't wait to get started at Dixons Carphone". He will succeed Sebastian James who is leaving after six years in the role to join Walgreens Boots Alliance.
Dixons Carphone issued its update a day earlier than planned after CEO Seb James said on Friday he would step down in April to join retail chemist Boots.
Nevertheless, Dixons warned that profits would be down sharply on previous year, with consumers opting to keep their old handsets as opposed to upgrading to more expensive models.
Baldock is now chief executive of pure-play online retailer Shop Direct PLC, and will replace James when the latter joins Walgreens Boots Alliance later in the year.
'Although the weaker trend in United Kingdom electricals after Boxing Day was disappointing, overall trading was solid and consensus FY18 forecasts are unchanged, ' commented analysts at Numis Securities today.
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His departure from Dixons Carphone is not entirely unexpected given that he has been with the business for a decade.
It now expects 2017/18 profit before tax in the range of 365-385 million pounds ($508-534 million). The statement, coming a day ahead of schedule after current CEO James' notice of departure on Friday, echo the polarising Christmas period seen by United Kingdom retailers: Those with strong online presence (ex-ABF's Primark) enjoyed a record trading period, while those with a more traditional brick and mortar focus saw a continuing slide in sales.
Today's positive share price reaction has helped steady a 2018 sell-off, with shares having retreated from 3.5-month highs of 204p (post-Exane BNP Paribas double downgrade highs) to 186p in the first 3-weeks of the year. The UK mobile business benefited from increased iPhone X availability and increased market share in SIM-free and SIM-only over the period.
"Looking forward we continue to keep our antennae twitching for any material change in consumer behaviour, but remain relentless in our focus on providing the best value, choice, and service to our consumers, " James said.
He added: "For the remainder of this [financial] year we have an early Easter, a new Samsung phone and the first week or two of our World Cup promotion to look forward to".
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