DSG International releases a trading update, and renames itself Dixons.
Do you ever visit that high street electronics retail chain -- you know, the one that's usually referred to as "Dixons, or whatever it's called these days"?
The "whatever it's called" is actually Currys.digital, but who's going to want to remember, or even use, a naff name like that? I've actually tried using it in conversation myself, but I always get the reply "Who?" to which I have to answer… well, you're getting the picture.
The old brand did have some negative connotations, with the spectre of the "spotty youth in Dixons" raised whenever talk turned to lack of knowledge of electronics retail staff. But even that got the brand name fixed in people's minds, and you know what they say about publicity. (And maybe it was just my local branches, but I found Dixons staff to be pretty good).
Update
Anyway, that's just a preamble that was spurred by Thursday's first-quarter trading update from the brand's owner, DSG International (LSE: DSGI), which told us that the Dixons name is coming back -- if not for those Currys.digital stores, at least for the company itself, which is renaming itself as Dixons Retail.
But what of trading? It sounds like it's turning out to be a good year, in line with expectations which are quite healthy. UK sales for the 12 weeks ending 24 July were up 3%, with market share growing thanks to strong sales of tellies for watching the World Cup, and good sales of iPads. Sales in the Nordic countries did well too, growing by 6% in local currency terms.
Store refurbishments across the group's high street brands (which include Currys and PC World in addition to, erm, what was it called again?) are on track, with 200 completed in the UK so far, 43 of them in the past quarter.
Outlook
Chief Executive John Browett said "This is an encouraging start to the year, especially given the challenging market conditions." He went on to say he's cautious about the economic outlook, but then everyone pretty much has to say that these days.
If current forecasts do turn out to be accurate, the current share price puts DSG/Dixons on a forward P/E for the end of the year of just over 9. And with next year's forecasts looking good too, the shares could be a bit of a bargain at the moment, especially as high street retail shares seem to be out of favour right now.
The Christmas period will definitely be one to watch this year. And if anyone at DSG is reading this, how about giving us an early present by getting rid of that Currys.digital brand?
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