DSG International cautious on 2010 despite 11% increase in Christmas sales

European operating electrical retailer DSG International (LSE: DSGI) said it had a good Christmas with all regions and product categories performing well during the peak shopping season. In a trading statement for the 12 weeks ended 9th January 2010, the company revealed an 11% increase in total group sales and an 8% increase on a like-for-like basis.

In the UK the Dixons, PC World and Curry’s parent company said during the period, its UK computing division benefited from the launch of Microsoft’s Windows 7. Overall the group’s UK & Ireland businesses reported an 8% increase in like-for-like sales. Also in the trading statement, the company’s e-commerce businesses and its Nordic and Italian operations were also highlighted for their strong performance over the 12 week period.

"Customer response to Christmas and the sale has been even better than we expected with strong demand across all the categories and countries”, DSG Chief Executive, John Browett said, “we expect 2010 to be tough across Europe and notably in the UK given the economic environment. However, we expect to continue to benefit from the self help of our Renewal & Transformation plan and continue to build solid foundations for future growth."

DSG also said its Renewal & Transformation plan is continuing to deliver consistently strong results as it remains on track to deliver £50 million in cost savings during the current year. Overall the retailer aims to save a total of £200 million in its 4 year programme.  http://www.proactiveinvestors.co.uk/companies/news/12185/dsg-international-cautious-on-2010-despite-11-increase-in-christmas-sales-12185.html