After two poor Christmases in a row, Dixons really needs to give investors something to cheer about when it unveils its crucial trading statement for the period on Wednesday. The electricals retailer, which runs high street names such as Currys, PC World and The Link, will also post interim results, but of most interest to investors will be the group’s performance over the festive season.
Dixons has engaged in a high level of promotional activity over the last couple of months in a bid to reverse its two-year losing streak. Despite this, analysts are forecasting largely flat like-for-like sales growth from the group. Moreover, some fear that the cost of promotions could have impacted the group’s margins in a big way.
In the wake of the figures, the retailer’s management team are likely to be questioned on their thoughts about the consumer outlook for 2004 and will probably be asked to comment on speculation that Dixons is interested in a move on its rival Kesa Electricals.
There may also be some indication from Dixons on the issue of what it plans to do with its impressive cash balance. Analysts estimate the group will have almost £400m of net cash on its balance sheet by the end April.
Extract from The Independent