Cold Christmas for DSGi

However, online sales through both Dixons.co.uk and FotoVista are up by 31 per cent
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DSGi suffered a shares fall of more than 20 per cent this morning, following poor Christmas trading.

The fall came after the retail group told the market that it expected a shortfall of up to £50 million on what it had been expecting.

It blamed low demand for laptops as one of the key drivers for its profits warning. It added that margins on traditionally profitable brown goods, including flat-panel televisions and other electrical goods were lower than it hoped after it was forced to cut prices.

Speaking about the warning, DSGi chairman Sir John Collins said: "Like-for-like sales were down one per cent reflecting generally weaker consumer environments across many of our markets.

"Overall trading for this important period, in which over half our annual profits are usually generated, has been disappointing, particularly in the UK, Italy and Spain.

"This weaker trading, together with a more cautious outlook for the balance of the year, means that we now expect full year profits before tax to be some £40 million to £50 million lower than current expectations."

The retailer, however, highlighted sales of games consoles and software, as well as digital photo frames had proved profitable.

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