Comet sales hit by bad weather, says Kesa Electricals

Comet - Struggling With Numbers

Comet – Struggling With Numbers

Comet owner and Europe’s third largest retailer of electricals, Kesa said sales in the UK were lower partly due to bad weather.

The group – which also owns the Darty France, said like-for-like sales were down across the board by 4 percent between November 1 and January 18 while sales at Comet slumped by 7.3 percent during the period.

Like-for-like sales for Darty were down by 1.8 percent while the sales for the entire group fell by 1.6 percent.

The company expects the full year pre-tax profits to be at the lower end of projections, although the results will be better than 2009.

The company’s online sales grew by 11 percent and compensated for the fall in like-for-like sales. However, Kesa said “record trading between Boxing Day and New Year” took place despite an overall slump in sales.

The company has also managed to secure a new credit line of €455 million (£383 million) on favourable terms, it disclosed. Interest expenses will fall by €500,000 in the current fiscal and by €3 million from next financial year onwards.

Kesa’s Chief Executive Thierry Falque-Pierrotin said “against a background of increased competitiveness, Darty France and the other established businesses delivered a robust performance, offset by softer trading at Comet and the developing businesses”.

Stating that the company has devised new strategies, he added: “We remain confident in our strategy and committed to our plans to implement the Darty concept in all our markets and we have in place a number of additional measures to improve revenue and reduce costs”.

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