Dixons Carphone is expected to defy faltering high street sentiment when it reports a 10 per cent rise in profits on Wednesday.
The FTSE 250 electricals retailer, which owns Currys, PC World and Carphone Warehouse, is expected to report profits of over £490m in the year to the end of April. This compares with £447m the year before.
This figure does not account for the losses associated with the ending of Dixons Carphone’s joint venture with mobile network Sprint. The termination of their partnership after less than two years was announced earlier this month and attributed to the “changing US mobile market landscape”.
As George Salmon, equity analyst at Hargreaves Lansdown, pointed out: “The demise of high street rivals like Comet and Phones 4u means there isn’t a great deal of ‘real world’ competition for Dixons Carphone’s ‘3-in-1’ mobile, computing and white goods stores.”
“However,” added Salmon, “the danger is from the less visible challenge posed by online competitors such as the mighty Amazon.”
These forecasts come after sales fell 1.3 per cent on the high street in May on a like-for-like basis, as compared to the same month the year before.