Dixons continues sales momentum

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THE owner of PC World and Currys kept up the pressure on its rivals yesterday by posting a further improvement in sales figures at its UK and Ireland business.

Dixons Retail Group, which has benefited from the challenges faced by competitors Comet and Argos, said underlying revenues were seven per cent higher in the region for the 12 weeks to July 21.

While August has proven to be quieter across some of its markets, it said the launch of the Windows 8 operating system and new products in the run-up to Christmas should benefit the business.

Shares have increased by two-thirds since the start of 2012 after a sales turnaround earlier this year, boosted by strong demand for iPads and Kindle devices and the digital TV switchover in the south.

The robust UK & Ireland performance has helped limit the impact of the eurozone crisis on its southern European arm, with wider group underlying sales five per cent higher in the quarter.

Sales in northern Europe jumped by 13 per cent. Seymour Pierce stockbrokers upgraded its rating on the stock to buy yesterday and said it was reassured by the continued momentum in UK trading.

Analyst Kate Calvert added: “Like John Lewis, Dixons has benefited from market consolidation in the UK with the change of ownership certainly weakening Comet’s performance further and we expect this benefit to continue.”

Dixons’ share price closed at XX last night.