DARTY reported a fall in like-for-like revenues in the three months ending 30 April yesterday, as the French-based electrical goods retailer pushed ahead with its turnaround plan against a weak economic backdrop.
Darty France, which represents more than half of the group's revenue, outperformed the market for the quarter, with market share gains in all major product categories. But the segment saw a 2.7 per cent fall in like-for-like sales.
“I fully support the plans announced in December ... to restore shareholder value by eliminating the losses at our non-core businesses, increasing profitability in our core businesses, and improving efficiencies in the cost base,” said Regis Schultz, who joined as chief executive of the firm on 23 April.
Darty, which has 457 stores and more than 10,000 employees, has been hit by a weak Eurozone economy and a shift to online sales in the electrical goods market. It has responded by selling loss-making operations and focusing on core markets of France, Belgium and the Netherlands.
Adjusted profit before tax for the year to 30 April for the continuing group is expected to be in line with current market expectations, the company said. Pre-tax profit is forecast at €26.1m (£22.2m).
City A.M. Reporter