Kesa Electricals, the owner of the Comet chain of electrical stores, has unveiled a drop in sales but said it was holding market share and on course to top last year’s group profits. Comet same-store sales fell four per cent from January 9 to April 30 with total sales dropping by 3.4 per cent.
The group, led by chief executive Thierry Falque-Pierrotin, blamed bad weather at the start of the year, tougher comparatives and subdued consumer demand for big-ticket items such as TVs for the fall. It is hoping next month’s World Cup in South Africa will boost demand for TVs offerign a short term windfall for the business just as rival Currys (DSGi) are also hoping.
Falque-Pierrotin said: “We are satisfied that overall the group traded in line with or ahead of its markets during the seasonally quiet period. We are encouraged by the improvement we have seen in gross margin.”
Some analysts are somewhat sceptical however about the reports of a drop in sales but profitability raised.
Kesa, which is facing up to the challenge of a resurgent Currys and the arrival of US electronics retailer Best Buy on the UK scene, expects annual pre-tax profit to be significantly ahead of last year and in line with current forecasts of £76million.
Kesa’s French chain Darty notched up a 0.5 per cent increase in same-store sales with group internet sales soaring 23.8 per cent.