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Kesa boosted by Comet revival
KESA Electricals reported better-than-expected interim profits today after cementing a return to sales growth at its Comet stores across the UK.
Same store sales rose two per cent at Kesa's 251 Comet outlets in the six months to October 31 as it made further improvements on the first quarter rise of 0.3 per cent.
Action to cut costs and restructure the UK arm saw Comet's retail losses slashed from 8.1m to 1.2m in the half year.
More stable trading conditions at its French chain Darty also helped boost interim figures, with group underlying pre-tax profits up 37 per cent at 14.9m - higher than the 11 million pencilled in by analysts.
Kesa, which has 26 Comet stores in Yorkshire, said it was "prepared and well positioned" for the peak Christmas and new year selling season.
Hot items that are selling well include coffee machines, portable PCs, iPhones and 32 inch televisions.
The group claimed to have stolen market share off rivals and outperformed a declining UK market, which it said fell around four per cent in the period.
But there are signs of improvements across the board in the UK consumer electronics industry.
Kesa's main competitor Currys and PC World parent DSG International also recently reported better trading, with its most recent same-store sales up 1% compared with a 6% decline previously reported.
However, sales figures across the industry are now being helped by easier comparisons with last year.
Kesa added there was "uncertainty" over the remainder of its financial year.
Thierry Falque-Pierrotin, chief executive of Kesa, said: "Trading conditions across all our markets continued to be challenging with widely varying geographic market conditions.
"However, the group has delivered a solid performance over the first half of the year, ahead of our major markets.
"The outlook for the second half of the year remains uncertain but our businesses are prepared and well positioned for the more significant peak trading period."
There are hopes that the end of the UK's temporary cut in VAT looming in January will encourage customers to bring forward spending, but Kesa today said it was too early to determine any impact on sales.
The group also confirmed aims to open 25 stores a year across the group, with around half in its developing countries business, which spans Darty operations across Italy, Switzerland and Turkey.
In the UK, it has opened 40 new-style stores and is also refurbishing outlets.
Kesa is also pushing to increase online sales, which now account for 13 per cent of total product sales in the UK and is targeted to increase to at least 20 per cent.
The past year has seen widespread restructuring efforts across Comet to overcome tough trading, including cuts in its Hertfordshire-based head office staff numbers and an overhaul of warehouse and distribution centres.
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Saturday 11 February 2012
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