Following a profit warning in May and the emergence of a huge data breach in June, investors are relieved that Dixon's Carphone had a relatively quiet quarter and is on track to meet its full-year targets.
In a trading update prior to a meeting with shareholders, the electric giant behind Carphone Warehouse and Currys PC World said it is still expecting to generate a profit before tax of around £ 300 million for the full year.
This represents a big drop compared to the £ 382 million it made in the past financial year, and an even larger decline compared to the £ 500 million it had posted a year earlier.
However, the figure is in line with what the new boss Alex Baldock explained earlier this year after replacing the old boss Seb James and revealing the extent of the retailer's problems.
Dixons Carphone is the group that is Currys PC World and Carphone Warehouse
The group's like-for-like sales were stable in the three months to the end of July, but decreased by 2% on a total basis.
Although the World Cup gave TV sales a boost in the UK, the retailer was hit by a weaker performance in white goods and computer use in its home market.
Comparable sales at the laborious mobile phone division fell by 1% in the quarter, while the retailer said that the market for postpayments is continuing to decline and the Sim Only trend is gaining momentum. & # 39;
Baldock sends a turnaround on the company's mobile phone unit, where a delay is caused by hard-core consumers who hold longer on older devices and go alone. He has already pledged to close nearly 100 Carphone Warehouse stores this year.
Analysts hoped the retailer would shed some light on the progress of its ongoing talks with mobile network operators, but, as independent retail analyst Nick Bubb pointed out, Baldock resolved the problem.
& # 39; No news is probably bad news, but we'll have to wait for the interims in December to confirm that, & # 39; said Bubb.
The company also did not update its data breach, resulting in 5.9 million bank card details and 10 million personal data records that were hacked last year. However, shareholders are expected to grind the company on this subject later today in its AGM.
Alex Baldock, former boss of Shop Direct, took over the helm at Dixon's Carphone earlier this year
Baldock said: "The performance of the first quarter was in line with expectations. We have maintained or expanded our leading market positions and our pre-tax profit for the full year of around £ 300 million remains unchanged.
We have made good progress in establishing a clear long-term direction for the company, one that sharpen our focus on the core, and that provides a better match for both our customers and our company behind the scenes.
I'm looking forward to a fuller update of our plans and progress in December. & # 39;
Highlights are online revenue growth – 13 percent more – and a strong contribution from stores in Greece – an increase of 9 percent.
Shares in Dixon's Carphone, which fell by 17 percent since early 2018, have jumped nearly 3 percent on the news.
& # 39; The dividend yield of 6.9 percent is a compelling reason to stay with the shares as the company's transformation takes place, "said Richard Hunter, head of the markets at Interactive Investor.
& # 39; Nevertheless, the problems of Dixon's Carphone will not be solved from one day to the next. Regular updates for smartphones in the industry decrease as the market approaches the saturation point.
& # 39; The general pressure on retailers and the possibility of UK consumer waste also weigh on the outlook. In anticipation of the next update in December, there is still a lot that management can do under the hood, & # 39; he added.