Darty reports 3.2 per cent rise in like-for-like sales

6th Feb 2014 11:50

Electrical retailer Darty reported a strong rise in sales for the three months ended on January 1st. In like-for-like terms sales rose by 3.2% overall and by 3.4% if Turkey was excluded.Growth in France was particularly robust. Like-for-like sales increased by 4.9% in that market, compensating for a drop of 1.3% in Belgium and the Netherlands and a 1% fall in Turkey, the Czech Republic and Slovakia. On the negative side of things, gross margins decreased by 80 basis points at the group level, although management claimed that was in line with expectations. Thus, company executives pointed out that the rise in sales was achieved despite ongoing price pressures in "challenging and promotional markets", with markets expected to continue being difficult.However, the firm had successfully implemented its cost saving programmes to deliver annual gross cost savings of €50m by 2014/15, By segments, strong growth as observed in tablets and smart phones with progress in large white goods and small domestic appliances.Strong sales of the new Ultra HD/4K and OLED screens were also seen. Web-generated sales continued to grow apace, Darty said. As of 15:39 shares of Darty were gaining by 2.75% to the 130.75p mark. AB