Curry’s owner DSG International is feeling the pain from an expensive trip abroad. Shares in the retailer fell sharply after it admitted its Italian division UNiEuro would slip into the red in the first half, taking the shine off a strong performance in the UK.
Underlying sales at its 116 Italian stores fell by 10% as shoppers reined in their spending. The dire performance means DSG’s first-half profits will now only be level with last year.
Chief executive John Clare blamed political uncertainty in Italy and fears of higher taxes for the slump. He insisted measures where being taken to turn the business around, but the companies Italian woes dragged the shares 16 pence lower to 202.5p as analysts trimmed full year profit forecasts.
Clare said: ‘I would hope that it will not be as much a drag on profits as it has been in the first half, time will tell’. DSG paid £300 million for the business in 2002. Clare predicted another digital Christmas this year as he unveiled 4% growth in underlying sales at its Currys stores and a 3% rise at PC World. (Source – Daily Mail)