Dixons Carphone, Britain’s biggest consumer electricals and mobile phone retailer, reported better than expected first-quarter sales on Thursday and said it had not seen any impact on demand from the vote in June to leave the European Union.
Shares in the company, which trades as Currys, PC World and Carphone Warehouse in the UK and Ireland, have fallen 12 percent in the last three months given its exposure to big ticket goods, and perceived vulnerability to any slide in consumer demand.
In the 13 weeks to July 30, Dixons Carphone, which also trades as Elkjop and El Giganten in Nordic nations and Kotsovolos in Greece, said sales at stores open more than a year rose 4 percent, beating analysts’ average forecast of 2.5 percent thanks to strong sales of mobiles, televisions and domestic appliances.
Dixons Carphone shares were up 3.4 percent at 387 pence at 0828 GMT.
Though Britain’s shock Brexit vote stunned markets, they have since recovered and UK consumers, who drove the country’s recovery after the financial crisis, appear to have largely taken the referendum result in their stride for now.
Data has suggested Britain’s economy has not suffered the kind of devastating impact forecast by some “Remain” supporters in advance of the June 23 referendum, although some economists say it is heading for a sharp slowdown.
“We’re not experiencing anything at the moment, we’re full steam ahead for peak (Christmas) and Black Friday (Nov. 25). If the consumer environment changes then we’ll trim our sales to match,” Dixons Carphone Chief Executive Seb James said.
“We’ve just got to take the world as we find it. We’re absolutely on the lookout and preparing ourselves in case something like that should happen,” he told reporters.
“But at the same time there’s a risk it could become a self fulfilling prophecy – if you start reducing your stock intake or all those things, you can make what wouldn’t otherwise be a problem a problem.”
Like-for-like sales in the UK and Ireland were also up 4 percent, again beating analysts’ consensus of up 2.5 percent.
Underlying sales rose 2 percent in the Nordics and 13 percent in southern Europe, driven by demand for fans and air conditioning units in Greece.
“We are delivering pleasing growth in all markets and continued high levels of customer satisfaction,” said James.
“Looking forward, we are optimistic about the future and about our ability to continue to outperform.”