Dixon Retail shares plunge following profits warning

Shares in Dixons Retail have plunged 20% after warning annual profits would be at the bottom of market expectations.



Dixons Retail, which owns Currys and PC World, said profits for the year to the end of April would be approximately £85m, compared with forecasts of £85m-£109m.

It added that like-for-like sales were down 7% in the past 11 weeks.

The group said it would focus on cutting costs further and look at exiting the Spanish market.

John Browett, Chief Executive at Dixons, said, "Consumer confidence across some of our markets is fragile and we expect it to continue to be so through much of 2011."

The group set out a four-step plan to respond to its current difficulties: A review of its Spanish operations, targeting expenditure on its highest return projects, focusing on cash generation and cutting costs.

However, Mr Browett said the group's longer-term plans to transform the business were working.

Dixons Retail changed its name from DSG International at the end of last year.