Hobson: Is it Time to Dump Dixons Carphone?

THE WEEK: Morningstar columnist Rodney Hobson considers whether to top up his investment in troubled retailer Dixons Carphone

Rodney Hobson 22 June, 2018 | 11:46AM

smart phone dixons carphone mobile retailer retail stock UK

We might be able to cope with walking down the street with no clothes on but doing without the latest mobile phone would leave us feeling naked. So, while it may be understandable likes of Debenhams (DEB) and House of Fraser are on the rack, it’s a worry that Dixons Carphone (DC.) is still struggling.

Markets were not too bothered that pre-tax profit for the year to 28 April were down 24% to £382 million because we had advance warning last month. In fact, the full-year results were greeted with a rise of 2.4% in the share price. The worry is that Dixons stuck to its guidance that there will be a further fall in profits in the current financial year to around £300 million.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Dixons Carphone PLC138.35 GBX-1.98

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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