Dixons Jumps on Growth in August Electrical Sales: London Mover

Dixons Retail Plc, (DXNS) the largest U.K. electronics retailer, rose the most since May 16 as a British Retail Consortium report pointed to strong sales of electrical goods ahead of a trading update from the company.

The shares gained 6.5 percent to 44.18 pence in London, the biggest advance on the FTSE 350 index. That extended the stock’s rise this year to 56 percent, after almost tripling in 2012.

There was “renewed growth for electricals in all segments” in August, the BRC said today as it reported growth in U.K. non-food sales that was the strongest since 2010.

Sales of tablets and laptops were boosted last month by back-to-school purchases, while small household appliances were also in demand, the BRC said. Sellers of large electrical items are still benefiting from market-share gains resulting from last year’s collapse of the rival Comet chain, it said.

The non-food figures “look strong with like-for-like growth in all categories with a lower level of commentary around promotional activity,” Richard Edwards, an analyst at Citigroup Inc. in London, wrote in an e-mailed note.

Dixons is due to announce first-quarter sales on Sept. 5, the day of its annual general meeting. Citigroup expects the Hemel Hempstead, England-based retailer to report a “robust” performance in the U.K. and Nordics region and estimates growth of 2 percent in sales at stores open at least a year.

To contact the reporter on this story: Paul Jarvis at pjarvis@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

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