PC World causes DSGi profits fall - PC Retail

PC World causes DSGi profits fall

Poor performance of retailer drive down first six months of group's year
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DSGi has seen a 26 per cent fall in profits for the first six months of the year compared to the same time last year, with the company blaming the poor performance of PC World and the overstocking of laptops for the decrease.

It reported pre-tax profits of £52.4 million for the first six months leading up to October 13th 2007, compared to £70.3 million during the same period last year.

The firm, however, did announce an increase of five per cent when it came to like-for-like sales – boosted mainly by sales of flat screen televisions – suggesting that margins have also become a problem for the technology retailer.

DSGi said that the poor performance of PC World, as well as overstocking of laptops and other computer hardware across the group had contributed to the "disappointing" results.

"The economic fundamentals make it difficult to extrapolate trends into the rest of the financial year," said the group, adding that it was: "appropriate to be cautious about the consumer environment."

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