Kesa sees sales hurt by French performance
ELECTRICALS chain Kesa said sales declines worsened in its fourth quarter as consumers fretted about fallout from the Eurozone debt crisis and its core French business came up against tough digital switchover comparisons.
Shares in the group fell eight per cent yesterday after the group, which sold its UK arm Comet at the beginning of the year, said sales at stores open over a year fell 5.9 per cent in the 16 weeks to 30 April.
Kesa said the group would, however, make an underlying pre-tax profit this year between analysts’ estimates of €53-64m.
Thierry Falque-Pierrotin, Kesa’s chief executive, warned: “Since last reporting in January trading conditions have been volatile and have remained weak in most of our markets, particularly in Vision [TVs] and in Italy and Spain.”
Like-for-like sales at Darty France stores open over a year slumped 10 per cent, having been down 4.7 per cent in the third quarter.
TV sales slumped by more than 30 per cent against a spike in demand last year when France switched from analogue to digital, forcing shoppers to upgrade their television sets.